NACVA Exam CVA Topic 5 Question 80 Discussion

Actual exam question for NACVA's CVA exam

Question #: 80
Topic #: 5

The cost approach provides a systematic framework for estimating the value of an intangible asset based on the economic principle of:

ASubstitution

BCompetition

CDouble counting

DAsset-based approach

Show Suggested Answer

Suggested Answer: A

by Theola at Feb 12, 2024, 07:58 PM

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Gerry

6 months ago

I see your point, Bea. Maybe D) Asset-based approach is not the right choice after all.

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Bea

6 months ago

But isn't the cost approach more about finding a substitute rather than just looking at the asset itself?

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Jarvis

6 months ago

I would choose D) Asset-based approach because it focuses on determining the value of the asset itself.

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Gerry

6 months ago

I agree with Bea, the cost approach is all about finding a substitute for the intangible asset.

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Bea

6 months ago

I think the answer is A) Substitution.

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Katy

7 months ago

Competition could also be a valid option, it's about determining the value based on market factors.

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Aja

7 months ago

I agree with Kristeen, A) Substitution makes sense because it involves finding a similar value.

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Louvenia

7 months ago

I disagree, I believe it's D) Asset-based approach.

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Kristeen

7 months ago

I think the answer is A) Substitution.

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