Question 1

Marital dissolution cases in jurisdiction where personal rather than a marital asset and therefore needs to be separately valued from the rest of the business enterprise. This example is an application of:

AControlling ownership interest

BMerged and acquired family business

CCapitalized access earnings method

DMarket based valuation approach

Answer : D

Question 2

The most typical procedure/s in capitalized earning method is/are all EXCEPT

AEstimate the net tangible asset value

BEstimate a normalized level of economic earnings

CQuantify the amount of excess earnings

DEstimate an appropriate indirect capitalization rate

Answer : D

Question 3

The most common interpretation of net tangible asst value is:

AGross assets net of accumulated depreciation (i.e., current market value of the tangible assets net of economic depreciation)

BNet current value of the financial assets and the tangible assets less current liabilities only

CNet current value of the financial assets and the tangible assets minus all liabilities

DNet current value of the financial less current liabilities only

Answer : B

Question 4

The second step in capitalized excess earnings method is:

AEstimation of normalized level of earnings

BQuantifying the amount of excess earnings

CCapitalizing the excess economic earnings

DEstimating an appropriate direct capitalization

Answer : A

Question 5

There is no universally accepted conclusion as to what accounts should be ''netted out'' in the estimation of net tangible asset value. For example, various analysts have interpreted net tangible assets to mean any one of the following EXCEPT:

AGross assets net of accumulated depreciation

BNet current value of the financial assets and the tangible assets less current liabilities only

CNet current value of the financial assets and the tangible assets minus all liabilities

DProbable future earnings

Answer : D

Free Practice Questions for NACVA Exam

Question 1

Question 2

Question 3

Question 4

Question 5