Question 1

The Capitalized Excess Earnings Method combines which two methods?

Accepted Answer

A)  Income and asset approaches. 
B)  Income and market approaches. 
C)  Asset and market approaches. 
D)  None of the above. 
A)  Income and asset approaches. 
B)  Income and market approaches. 
C)  Asset and market approaches. 
D)  None of the above. C

Question 2

Which of the following is not a step in the process of valuation?

Accepted Answer

A)  Sell a sample of the assets to test market conditions. 
B)  Collect and analyze information about the business. 
C)  Research the industry in which the business operates. 
D)  Study and Analyze the business's financial statements. 
A)  Sell a sample of the assets to test market conditions. 
B)  Collect and analyze information about the business. 
C)  Research the industry in which the business operates. 
D)  Study and Analyze the business's financial statements. A

Question 3

Financial reporting as defined by both U.S. and international standards is moving away from:

Accepted Answer

A)  Replacement cost valuating on the balance sheet. 
B)  Fair value reporting on the balance sheet. 
C)  Historical-cost reporting on the balance sheet. 
D)  Book value reporting on the balance sheet. 
A)  Replacement cost valuating on the balance sheet. 
B)  Fair value reporting on the balance sheet. 
C)  Historical-cost reporting on the balance sheet. 
D)  Book value reporting on the balance sheet. C

Question 4

Under the Market approach, what are assets valued at?

Accepted Answer

Under the market approach, the value of

Question 5

The valuation approached of income is the value of the asset is the present value of the future economic income associated with the asset. Explain the main problem with this approach.

Accepted Answer

The main problem in applying the income

Question 6

Explain the standard of value that pertains to investment value.

Accepted Answer

This standard defines value in terms of

Question 7

If a businesses or its assets are going to be forced liquidated, what will happen to their value?

Accepted Answer

A)  It will be higher than normal sale conditions. 
B)  It will be lower than normal sale conditions. 
C)  It will be the same as normal sale conditions. 
D)  Assets cannot be forced to be liquidated. 
A)  It will be higher than normal sale conditions. 
B)  It will be lower than normal sale conditions. 
C)  It will be the same as normal sale conditions. 
D)  Assets cannot be forced to be liquidated.

Question 8

The simplest way to describe the asset approach to valuation is:

Accepted Answer

A)  Historical cost minus liabilities. 
B)  Assets minus liabilities. 
C)  Book value minus liabilities. 
D)  Market value minus liabilities. 
A)  Historical cost minus liabilities. 
B)  Assets minus liabilities. 
C)  Book value minus liabilities. 
D)  Market value minus liabilities.

Question 9

Once a replacement cost is calculated, it is customary to:

Accepted Answer

A)  Adjust the price of the asset upward to account for depreciation that was deducted in the replacement calculations. 
B)  Adjust the price of the asset downward to account for its age. 
C)  Marginalize the cost calculated by current market conditions. 
D)  Average the cost calculated by the original cost of the asset. 
A)  Adjust the price of the asset upward to account for depreciation that was deducted in the replacement calculations. 
B)  Adjust the price of the asset downward to account for its age. 
C)  Marginalize the cost calculated by current market conditions. 
D)  Average the cost calculated by the original cost of the asset.

Question 10

The capitalized income method is a variation on the:

Accepted Answer

A)  Asset approach. 
B)  Market approach. 
C)  Income approach. 
D)  Discount income method. 
A)  Asset approach. 
B)  Market approach. 
C)  Income approach. 
D)  Discount income method.

Question 11

Standard of value is defined as value that is relevant to a particular entity or individual.

Accepted Answer

A) True 
 B)False

Question 12

Level 5 of the fair value hierarchy estimates:

Accepted Answer

A)  Market values based on quoted prices for a similar asset, with adjustments made for differences between the subject asset and the similar asset. 
B)  Market values based on mathematical models that use directly-related market variables as indicators of market value. 
C)  Market values based on mathematical models that use indirectly-related market variables as indicators of market value. 
D)  Market values based on mathematical models that use internal business inputs as indicators of market value. 
A)  Market values based on quoted prices for a similar asset, with adjustments made for differences between the subject asset and the similar asset. 
B)  Market values based on mathematical models that use directly-related market variables as indicators of market value. 
C)  Market values based on mathematical models that use indirectly-related market variables as indicators of market value. 
D)  Market values based on mathematical models that use internal business inputs as indicators of market value.

Question 13

The Arbitrage Pricing Theory is commonly implemented with models that use things like:

Accepted Answer

A)  Inflation rates. 
B)  Overall business default rates. 
C)  Interest rates. 
D)  All of the above. 
A)  Inflation rates. 
B)  Overall business default rates. 
C)  Interest rates. 
D)  All of the above.

Question 14

What is business valuation?

Accepted Answer

A)  A discipline that deals with the appraisal of various types of financial assets. 
B)  An art form that uses part industry data and part defendable logic to determine a businesses value. 
C)  Idiosyncratic factors that uniquely affect the risk of a single business. 
D)  A strict set of formula prescribed by the IRS for determining the value of a business. 
A)  A discipline that deals with the appraisal of various types of financial assets. 
B)  An art form that uses part industry data and part defendable logic to determine a businesses value. 
C)  Idiosyncratic factors that uniquely affect the risk of a single business. 
D)  A strict set of formula prescribed by the IRS for determining the value of a business.

Question 15

Determining what an asset will sell for within a reasonable time, in an open market, with a willing buyer, with normal means of consideration, and with seller who are both fully informed and motivated is called its:

Accepted Answer

A)  Market Value. 
B)  Replacement Value. 
C)  Fundamental Value. 
D)  Fair Market Value. 
A)  Market Value. 
B)  Replacement Value. 
C)  Fundamental Value. 
D)  Fair Market Value.

Question 16

Compare and contrast historical and replacement costs.

Accepted Answer

Historical cost. This mostly involves th

Question 17

What are the components of the Asset approach to valuation?

Accepted Answer

Under the asset approach, the value of a

Question 18

Business valuators will always state their findings in a specific dollar amount and never in a dollar value range.

Accepted Answer

A) True 
 B)False

Question 19

Since there 3 levels of synergy and 2 rates of speed, there is a total of ______ possible combined value premises.

Accepted Answer

A)  2. 
B)  3. 
C)  5. 
D)  6. 
A)  2. 
B)  3. 
C)  5. 
D)  6.

Question 20

Who assists with education, standardization and education of business appraisers?

Accepted Answer

A)  SEC. 
B)  DOJ. 
C)  IRS. 
D)  Independent organizations. 
A)  SEC. 
B)  DOJ. 
C)  IRS. 
D)  Independent organizations.

The Capitalized Excess Earnings Method combines which two methods?

Which of the following is not a step in the process of valuation?

Financial reporting as defined by both U.S. and international standards is moving away from:

Under the Market approach, what are assets valued at?

The valuation approached of income is the value of the asset is the present value of the future economic income associated with the asset. Explain the main problem with this approach.

Explain the standard of value that pertains to investment value.

If a businesses or its assets are going to be forced liquidated, what will happen to their value?

The simplest way to describe the asset approach to valuation is:

Once a replacement cost is calculated, it is customary to:

The capitalized income method is a variation on the:

Standard of value is defined as value that is relevant to a particular entity or individual.

Level 5 of the fair value hierarchy estimates:

The Arbitrage Pricing Theory is commonly implemented with models that use things like:

What is business valuation?

Determining what an asset will sell for within a reasonable time, in an open market, with a willing buyer, with normal means of consideration, and with seller who are both fully informed and motivated is called its:

Compare and contrast historical and replacement costs.

What are the components of the Asset approach to valuation?

Business valuators will always state their findings in a specific dollar amount and never in a dollar value range.

Since there 3 levels of synergy and 2 rates of speed, there is a total of ______ possible combined value premises.

Who assists with education, standardization and education of business appraisers?

Introduction to Forensic Accounting and Fraud Examination

The Forensic Accounting Legal Environment

Fundamentals I: Accounting Information Systems

Fundamentals II: The Auditing Environment

Fraud Prevention and Risk Management

Fraud Detection

The Fraud Investigation and Engagement Processes

The Evidence Collection Process

Fraud Examination Evidence I: Physical, Documentary, and Observational Evidence

Fraud Examination Evidence II: Interview and Interrogation Methods

Fraud Examination Evidence III: Forensic Science and Computer Forensics

The Fraud Report, Litigation, and the Recovery Process

Employee, Vendor, and Other Frauds Against the Organization

Financial Statement Fraud

Fraud and Sox Compliance

Tax Fraud

Bankruptcy, Divorce, Identity Theft

Organized Crime, Counterterrorism, and Anti-Money Laundering

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Exam 19: Business Valuation

The Capitalized Excess Earnings Method combines which two methods?

Which of the following is not a step in the process of valuation?

Financial reporting as defined by both U.S. and international standards is moving away from:

Under the Market approach, what are assets valued at?

The valuation approached of income is the value of the asset is the present value of the future economic income associated with the asset. Explain the main problem with this approach.

Explain the standard of value that pertains to investment value.

If a businesses or its assets are going to be forced liquidated, what will happen to their value?

The simplest way to describe the asset approach to valuation is:

Once a replacement cost is calculated, it is customary to:

The capitalized income method is a variation on the:

Standard of value is defined as value that is relevant to a particular entity or individual.

Level 5 of the fair value hierarchy estimates:

The Arbitrage Pricing Theory is commonly implemented with models that use things like:

What is business valuation?

Determining what an asset will sell for within a reasonable time, in an open market, with a willing buyer, with normal means of consideration, and with seller who are both fully informed and motivated is called its:

Compare and contrast historical and replacement costs.

What are the components of the Asset approach to valuation?

Business valuators will always state their findings in a specific dollar amount and never in a dollar value range.

Since there 3 levels of synergy and 2 rates of speed, there is a total of ______ possible combined value premises.

Who assists with education, standardization and education of business appraisers?

Introduction to Forensic Accounting and Fraud Examination

The Forensic Accounting Legal Environment

Fundamentals I: Accounting Information Systems

Fundamentals II: The Auditing Environment

Fraud Prevention and Risk Management

Fraud Detection

The Fraud Investigation and Engagement Processes

The Evidence Collection Process

Fraud Examination Evidence I: Physical, Documentary, and Observational Evidence

Fraud Examination Evidence II: Interview and Interrogation Methods

Fraud Examination Evidence III: Forensic Science and Computer Forensics

The Fraud Report, Litigation, and the Recovery Process

Employee, Vendor, and Other Frauds Against the Organization

Financial Statement Fraud

Fraud and Sox Compliance

Tax Fraud

Bankruptcy, Divorce, Identity Theft

Organized Crime, Counterterrorism, and Anti-Money Laundering

Dispute Resolution Services

Filters