NACVA Exam CVA Topic 4 Question 102 Discussion

Actual exam question for NACVA's CVA exam

Question #: 102
Topic #: 4

[All CVA Questions]

Book value per share is based on the number of shares outstanding at the end of accounting period rather than the weighted average used in computing earning per share. Also, book value normally is computed without considering:

ATreasury stock

BPossible dilutive effects of conversions

CMaximum potential dilution

DAnti-dilutives and their effects

Show Suggested Answer

Suggested Answer: A

by Asha at Nov 18, 2024, 05:24 AM

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Angelica

18 days ago

Hmm, this is a tough one. I'm going to have to go with D, anti-dilutives and their effects. Book value is a pretty straightforward calculation, right?

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Alline

3 days ago

A) Treasury stock

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Christiane

29 days ago

Haha, this is like a trick question! The answer is clearly A, since treasury stock is not considered in the book value calculation. Easy peasy!

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Stefania

6 days ago

User 1: I think the answer is A) Treasury stock.

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Ashlee

1 months ago

Whoa, this question is really testing our understanding of the differences between book value and earnings per share. I'm going with C, maximum potential dilution.

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