NACVA Exam CVA Topic 3 Question 96 Discussion

Actual exam question for NACVA's CVA exam

Question #: 96
Topic #: 3

[All CVA Questions]

The work-in-process inventory of a professional service firm is essentially the unbilled receivables of the firm. Therefore, the same net realizable value rules discussed with respect to accounts and notes receivable would apply to this asset as well. With regard to tangible merchandise inventory, there are some common valuation methods such as:

AThe cost of reproduction method

BThe income expenditure method

CThe comparative sales method

DA and C

Show Suggested Answer

Suggested Answer: D

by Cherelle at Sep 17, 2024, 06:13 AM

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Latricia

10 months ago

D, all the way. A and C are the classics when it comes to tangible merchandise inventory. Income expenditure? That's like trying to value a unicorn.

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Tequila

9 months ago

D is the way to go for sure, it covers all the bases when it comes to valuation methods.

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Tequila

9 months ago

Income expenditure method does seem a bit out there compared to the other options.

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Tequila

9 months ago

I agree, A and C are definitely the go-to methods for valuing tangible merchandise inventory.

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Rozella

10 months ago

I'm going to have to go with D on this one. A and C just make the most sense for valuing tangible merchandise. The income expenditure method sounds more like something you'd use for a business, not inventory.

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Bong

10 months ago

It's important to consider the net realizable value when valuing work-in-process inventory for a professional service firm.

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Mitsue

10 months ago

The cost of reproduction method and the comparative sales method are commonly used in determining the value of inventory.

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Louisa

10 months ago

I agree, A and C seem like the most logical choices for valuing tangible merchandise inventory.

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Louisa

11 months ago

I would go with option D, as it includes both the cost of reproduction and comparative sales methods.

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Malcom

11 months ago

I believe the net realizable value rules should apply to this asset.

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Madonna

11 months ago

I agree, it's like the firm's unbilled receivables.

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Louisa

11 months ago

I think the work-in-process inventory is important for a service firm.

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Frederick

11 months ago

This is a tricky one, but I think D is the way to go. The income expenditure method doesn't really seem relevant for tangible merchandise inventory.

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Amira

9 months ago

I'm leaning towards D too, it covers a wider range of valuation methods.

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Teddy

10 months ago

The comparative sales method is commonly used in retail, so I would go with D as well.

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Dana

10 months ago

I think A and C could also be valid options for valuation methods.

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Gerald

10 months ago

I agree, D seems like the best choice here.

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Fausto

11 months ago

B sounds like it might be more applicable to something like real estate valuation. I'm going with D – A and C.

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Dell

10 months ago

I'm going with D as well. A and C cover a wider range of valuation methods.

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Lavonna

10 months ago

I think D makes the most sense for professional service firms. A and C seem like the best options.

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Jeanice

11 months ago

I agree, B does sound more applicable to real estate. I also chose D – A and C.

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Leonida

11 months ago

A and C seem like the most logical options here. The cost of reproduction method and the comparative sales method are commonly used for valuing tangible merchandise inventory.

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Chau

10 months ago

Yes, understanding the net realizable value rules is crucial for professional service firms.

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Yuki

10 months ago

It's important to consider these valuation methods when determining the value of work-in-process inventory.

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Ryann

11 months ago

The cost of reproduction method and the comparative sales method are commonly used in this case.

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Tamala

11 months ago

I agree, A and C are the most logical options for valuing tangible merchandise inventory.

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