NACVA Exam CVA Topic 6 Question 83 Discussion

Actual exam question for NACVA's Certified Valuation Analysts exam

Question #: 83
Topic #: 6

[All Certified Valuation Analysts Questions]

The determination of which asset-based method to use in a given valuation engagement should be a function of all of the following EXCEPT:

AThe experience and judgment of the analyst

BThe quantity and quality of available data

CThe purpose and objective of the valuation

DFinancial asset account categories

Show Suggested Answer

Suggested Answer: D

by Mozell at Apr 13, 2024, 10:11 PM

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Niesha

19 hours ago

Haha, yeah, you don't want to use the 'asset-stripping' method on a company with mostly intangible assets. That would be a disaster!

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Isabella

3 days ago

Hmm, I'm not so sure. Financial asset account categories seem like they could be a pretty important consideration too, depending on the nature of the business.

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Mattie

4 days ago

True, but I think the quantity and quality of available data should be the most important factor. If the data is incomplete or unreliable, it doesn't matter how experienced the analyst is.

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Oretha

5 days ago

But what about the experience and judgment of the analyst? Surely that plays a big role in deciding which method to use, even if the purpose of the valuation is clear.

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Jame

7 days ago

I agree. The purpose of the valuation, whether it's for taxation, financing, or some other reason, should guide the selection of the asset-based approach.

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Nida

9 days ago

I think this is a tricky question. The purpose and objective of the valuation should be a key factor in determining the appropriate asset-based method to use, not an exception.

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