Question 1

When calculating the asset accumulation method, what is done with the off-balance sheet assets?

Accepted Answer

A)  They are ignored. 
B)  They are added to the balance sheet. 
C)  They are subtracted from the balance sheet. 
D)  None of the above. 
A)  They are ignored. 
B)  They are added to the balance sheet. 
C)  They are subtracted from the balance sheet. 
D)  None of the above.

Question 2

Which of the following would not be something a forensic accountant would collect when gathering information about a business?

Accepted Answer

A)  Business history. 
B)  Key employees. 
C)  Supply chain. 
D)  Key competitors. 
A)  Business history. 
B)  Key employees. 
C)  Supply chain. 
D)  Key competitors.

Question 3

If a businesses assets are going to be valuated at a high synergistic possibility, then it is assumed:

Accepted Answer

A)  That they are going to be broken into pieces and sold separately outside the business. 
B)  They are going to be sold as a group outside the business. 
C)  They are going to be sold at their salvage value. 
D)  They are going to be sold as a group inside of the businesses. 
A)  That they are going to be broken into pieces and sold separately outside the business. 
B)  They are going to be sold as a group outside the business. 
C)  They are going to be sold at their salvage value. 
D)  They are going to be sold as a group inside of the businesses.

Question 4

Adjustment factors apply to which of the following valuations methods?

Accepted Answer

A)  Asset approach. 
B)  Market approach. 
C)  Income approach. 
D)  All of the above. 
A)  Asset approach. 
B)  Market approach. 
C)  Income approach. 
D)  All of the above.

Question 5

Explain what restrictions on transferability are and how they might effect business valuation.

Accepted Answer

Many things can impose restrictions on t

Question 6

What is the minimum number of comparable companies that should be selected when calculating Guideline Publicly Traded Company Method?

Accepted Answer

A)  3. 
B)  6. 
C)  12. 
D)  32. 
A)  3. 
B)  6. 
C)  12. 
D)  32.

Question 7

Under the market approach, the value of the asset is what the asset can be sold for in an open market within:

Accepted Answer

A)  The immediate future. 
B)  30 days. 
C)  60 days. 
D)  A reasonable time frame. 
A)  The immediate future. 
B)  30 days. 
C)  60 days. 
D)  A reasonable time frame.

Question 8

Appraisal organizations that issue credentials are all a part of the U.S. Government or United Nations.

Accepted Answer

A) True 
 B)False

Question 9

No synergy is when the assets of a business are sold as a group but not as part of an assumed going concern.

Accepted Answer

A) True 
 B)False

Question 10

There is no one right way to value an asset, and in many cases the process of assigning a single dollar value to a complex asset is as much art as it is science, although this is not something that many valuation specialists are likely to tell all their clients.

Accepted Answer

A) True 
 B)False

Question 11

If a businesses assets are going to be valued with no synergistic possibility, then it is assumed:

Accepted Answer

A)  That they are going to be broken into pieces and sold separately outside the business. 
B)  They are going to be sold as a group outside the business. 
C)  They are going to be sold at their salvage value. 
D)  They are going to be sold as a group inside of the businesses. 
A)  That they are going to be broken into pieces and sold separately outside the business. 
B)  They are going to be sold as a group outside the business. 
C)  They are going to be sold at their salvage value. 
D)  They are going to be sold as a group inside of the businesses.

Question 12

Which of the following is not a step in calculating the Guideline Publicly Traded Company Method?

Accepted Answer

A)  Average the net realizable assets of the guideline companies. 
B)  Adjust the financial statements of the guideline companies to make them comparable to the subject company. 
C)  Compute various price-based financial ratios for the guidelines companies. 
D)  Select guideline companies. 
A)  Average the net realizable assets of the guideline companies. 
B)  Adjust the financial statements of the guideline companies to make them comparable to the subject company. 
C)  Compute various price-based financial ratios for the guidelines companies. 
D)  Select guideline companies.

Question 13

Describe at least 3 of the 6 levels of the fair value hierarchy as defined by the Financial Accounting Standards Board's Fair Value Project.

Accepted Answer

Level 0: Estimated market value based on

Question 14

What are the general requirements that business appraisers strive for?

Accepted Answer

A)  Consistency. 
B)  Defensibility. 
C)  Goodwill. 
D)  Suitability for purpose. 
A)  Consistency. 
B)  Defensibility. 
C)  Goodwill. 
D)  Suitability for purpose.

Question 15

Basic elements of the income assignment include identification of the specific legal property interests to be evaluated.

Accepted Answer

A) True 
 B)False

Question 16

What are the three various synergistic possibilities? Describe each.

Accepted Answer

High synergy-The going concern value pre

Question 17

Under the income approach, the value of the asset is the present value of the future economic income associated with the asset.

Accepted Answer

A) True 
 B)False

Question 18

How is the American Society of Appraisers (ASA) different from the Appraisal Foundation?

Accepted Answer

A)  The ASA is a governmental agency and the Appraisal Foundation is a private organization. 
B)  The ASA is a private organization and the Appraisal Foundation is a governmental agency. 
C)  The ASA accepts individuals whereas the Appraisal Foundation only accepts affiliate organizations. 
D)  The ASA only accepts affiliate organizations whereas the Appraisal Foundation accepts individuals. 
A)  The ASA is a governmental agency and the Appraisal Foundation is a private organization. 
B)  The ASA is a private organization and the Appraisal Foundation is a governmental agency. 
C)  The ASA accepts individuals whereas the Appraisal Foundation only accepts affiliate organizations. 
D)  The ASA only accepts affiliate organizations whereas the Appraisal Foundation accepts individuals.

Question 19

The fair value hierarchy represents of a continuum, defined along the lines of relative certainty, of possibilities that may be used to estimate market value from historical data.

Accepted Answer

A) True 
 B)False

Question 20

Under the market approach, the value of the asset is what the asset can be sold for in an open market within some reasonable time period.

Accepted Answer

A) True 
 B)False

When calculating the asset accumulation method, what is done with the off-balance sheet assets?

Which of the following would not be something a forensic accountant would collect when gathering information about a business?

If a businesses assets are going to be valuated at a high synergistic possibility, then it is assumed:

Adjustment factors apply to which of the following valuations methods?

Explain what restrictions on transferability are and how they might effect business valuation.

What is the minimum number of comparable companies that should be selected when calculating Guideline Publicly Traded Company Method?

Under the market approach, the value of the asset is what the asset can be sold for in an open market within:

Appraisal organizations that issue credentials are all a part of the U.S. Government or United Nations.

No synergy is when the assets of a business are sold as a group but not as part of an assumed going concern.

There is no one right way to value an asset, and in many cases the process of assigning a single dollar value to a complex asset is as much art as it is science, although this is not something that many valuation specialists are likely to tell all their clients.

If a businesses assets are going to be valued with no synergistic possibility, then it is assumed:

Which of the following is not a step in calculating the Guideline Publicly Traded Company Method?

Describe at least 3 of the 6 levels of the fair value hierarchy as defined by the Financial Accounting Standards Board's Fair Value Project.

What are the general requirements that business appraisers strive for?

Basic elements of the income assignment include identification of the specific legal property interests to be evaluated.

What are the three various synergistic possibilities? Describe each.

Under the income approach, the value of the asset is the present value of the future economic income associated with the asset.

How is the American Society of Appraisers (ASA) different from the Appraisal Foundation?

The fair value hierarchy represents of a continuum, defined along the lines of relative certainty, of possibilities that may be used to estimate market value from historical data.

Under the market approach, the value of the asset is what the asset can be sold for in an open market within some reasonable time period.

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

Exam 19: Business Valuation

When calculating the asset accumulation method, what is done with the off-balance sheet assets?

Which of the following would not be something a forensic accountant would collect when gathering information about a business?

If a businesses assets are going to be valuated at a high synergistic possibility, then it is assumed:

Adjustment factors apply to which of the following valuations methods?

Explain what restrictions on transferability are and how they might effect business valuation.

What is the minimum number of comparable companies that should be selected when calculating Guideline Publicly Traded Company Method?

Under the market approach, the value of the asset is what the asset can be sold for in an open market within:

Appraisal organizations that issue credentials are all a part of the U.S. Government or United Nations.

No synergy is when the assets of a business are sold as a group but not as part of an assumed going concern.

There is no one right way to value an asset, and in many cases the process of assigning a single dollar value to a complex asset is as much art as it is science, although this is not something that many valuation specialists are likely to tell all their clients.

If a businesses assets are going to be valued with no synergistic possibility, then it is assumed:

Which of the following is not a step in calculating the Guideline Publicly Traded Company Method?

Describe at least 3 of the 6 levels of the fair value hierarchy as defined by the Financial Accounting Standards Board's Fair Value Project.

What are the general requirements that business appraisers strive for?

Basic elements of the income assignment include identification of the specific legal property interests to be evaluated.

What are the three various synergistic possibilities? Describe each.

Under the income approach, the value of the asset is the present value of the future economic income associated with the asset.

How is the American Society of Appraisers (ASA) different from the Appraisal Foundation?

The fair value hierarchy represents of a continuum, defined along the lines of relative certainty, of possibilities that may be used to estimate market value from historical data.

Under the market approach, the value of the asset is what the asset can be sold for in an open market within some reasonable time period.

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