NACVA CVA Exam - Topic 2 Question 121 Discussion

Actual exam question for NACVA's CVA exam

Question #: 121
Topic #: 2

_____________ is the method that produces the largest, quickest depreciation deductions is the one most often selected by closely held businesses, since they are most eager to minimize reported taxable income.

AMACRS

BDeclining balance method

CStraight --line method

DSum-of-years

Show Suggested Answer

Suggested Answer: A

by Emilio at Mar 07, 2026, 03:11 AM

Limited Time Offer

25%

Off

Get Premium CVA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Kanisha

9 days ago

C) Straight-line is too slow for businesses. MACRS is the way!

upvoted 0 times

...

France

14 days ago

I prefer B) Declining balance. It’s effective too.

upvoted 0 times

...

Arthur

19 days ago

Agreed! MACRS is popular for tax savings.

upvoted 0 times

...

Major

24 days ago

I think it's A) MACRS. It gives the best deductions fast.

upvoted 0 times

...

Colby

30 days ago

But MACRS is more popular. It really helps with lowering taxable income quickly.

upvoted 0 times

...

Marylin

1 month ago

I’m leaning towards B) Declining balance method. It’s also effective for quick depreciation.

upvoted 0 times

...

Abel

1 month ago

Agreed! MACRS is definitely the go-to for small businesses.

upvoted 0 times

...

Precious

2 months ago

I think it's A) MACRS. It gives the biggest deductions fast.

upvoted 0 times

...

Ciara

2 months ago

Definitely A) MACRS. We need to reduce taxable income quickly!

upvoted 0 times

...

Serina

2 months ago

B) Declining balance could work too, but MACRS is faster.

upvoted 0 times

...

Laine

2 months ago

I agree, MACRS is popular for tax savings.

upvoted 0 times

...

Malissa

2 months ago

I think it's A) MACRS. It gives the best deductions.

upvoted 0 times

...

Lawrence

2 months ago

Totally agree, MACRS is the way to go for maximizing deductions!

upvoted 0 times

...

Nada

3 months ago

Wait, are we sure MACRS is always the best choice? Seems too good to be true.

upvoted 0 times

...

Dannie

4 months ago

A) MACRS allows for accelerated depreciation, that's why it's a go-to.

upvoted 0 times

...

Tonette

4 months ago

I think B) Declining balance method is actually more effective for some businesses.

upvoted 0 times

...

Derick

4 months ago

Definitely A) MACRS, it's super popular for tax purposes.

upvoted 0 times

...

Herminia

5 months ago

Sum-of-years is underrated, but MACRS still wins for speed!

upvoted 0 times

...

Leatha

5 months ago

Surprised to see MACRS as the top choice, is it really that beneficial?

upvoted 0 times

...

William

5 months ago

Straight-line method is too slow for those businesses!

upvoted 0 times

...

Marlon

5 months ago

I disagree, B) Declining balance method can also be effective.

upvoted 0 times

...

Nettie

5 months ago

Definitely A) MACRS, it's super popular for tax purposes.

upvoted 0 times

...

Erick

5 months ago

I’m leaning towards B) Declining balance, but I could be mixing it up with MACRS since they both seem to maximize deductions quickly.

upvoted 0 times

...

Paola

6 months ago

I feel like the straight-line method is too slow for what they want here. It’s definitely not the right choice.

upvoted 0 times

...

Carlene

6 months ago

I remember practicing a question similar to this, and I think the declining balance method also provides significant deductions, but MACRS is more common.

upvoted 0 times

...

Samira

6 months ago

I think the answer might be A) MACRS, but I'm not entirely sure if it's the quickest method.

upvoted 0 times

...