Free NACVA CVA Exam Questions

Become NACVA Certified with updated CVA exam questions and correct answers

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Total 253 Questions | Updated On: Jan 08, 2025

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Question 1

Which one of the following is/are example/s of normalizing adjustments?

A : equacy of allowance and reserve accounts

B : n-depreciation methods and schedules

C : licies regarding capitalization or expensing of various costs (adjust to industry norms)

D : anges in capital structure

Answer: A,C

Question 2

The FASB says that, for ''unobservable inputs,'' the valuation should include market participant assumptions about risk, even if this adjustment is different to determine. Interestingly, it breaks risk into following categories EXCEPT:

A : risk inherent in a particular valuation technique

B : risk inherent in inputs of the valuation technique

C : explicit risk related to a particular valuation technique

D : implicit risk related to a particular valuation technique

Answer: C,D

Question 3

The discount rate is a market-driven rate. It represents the expected yield rate-or rate of return-necessary to induce:

A : vestors to commit available funds to the subject investment, given its level of risk

B : eld rate

C : vidends

D : vestment yield

Answer: A

Question 4

There is a general consensus among appraisers that there is little or no difference in controlling interest market values between S corporations and C corporations under most circumstances, and that any difference depends on:

A : nding a seller that there may be differences in value at the shareholder level for noncontrolling interests.

B : nding a buyer that there may be differences in value at the shareholder level for noncontrolling interests.

C : nding a dealer that there may be differences in value at the shareholder level for non- controlling interests.

D : nding a broker that there may be differences in value at the shareholder level for non- controlling interests.

Answer: B

Question 5

The most frequently encountered reasons for needing to value debt securities are the following EXCEPT:

A : rchase or sale for cash

B : change of equity for debt, or vice versa

C : locating total enterprise value among classes of securities in a leverages buyout, recapitalization (including)

D : justing an equity statement owned or owed

Answer: D

Page: 1 / 51

Total 253 Questions | Updated On: Jan 08, 2025

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