NACVA Exam CVA Topic 6 Question 83 Discussion

Actual exam question for NACVA's CVA exam

Question #: 83
Topic #: 6

The determination of which asset-based method to use in a given valuation engagement should be a function of all of the following EXCEPT:

AThe experience and judgment of the analyst

BThe quantity and quality of available data

CThe purpose and objective of the valuation

DFinancial asset account categories

Show Suggested Answer

Suggested Answer: D

by Mozell at Apr 13, 2024, 10:11 PM

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Beckie

5 months ago

Yes, the analyst's expertise can help us choose the most appropriate method

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Rikki

5 months ago

I think it's important to consider the experience and judgment of the analyst as well

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Rene

5 months ago

That's true, we need reliable data to support our valuation method

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Yong

6 months ago

But we also need to take into account the quantity and quality of available data

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Beckie

6 months ago

I agree, the purpose and objective of the valuation should guide our choice

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Devorah

6 months ago

You're right, C) The purpose and objective of the valuation is important too. It helps determine the most appropriate approach.

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Bette

6 months ago

But shouldn't the purpose and objective of the valuation also play a role in selecting the method?

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Dalene

6 months ago

I agree with the analyst's experience is crucial for choosing the right asset-based method

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Rene

7 months ago

I think the key is to consider the purpose of the valuation,

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Devorah

7 months ago

I disagree, I believe it's A) The experience and judgment of the analyst

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Bette

7 months ago

I think the answer is D) Financial asset account categories

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Niesha

8 months ago

Haha, yeah, you don't want to use the 'asset-stripping' method on a company with mostly intangible assets. That would be a disaster!

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Isabella

8 months ago

Hmm, I'm not so sure. Financial asset account categories seem like they could be a pretty important consideration too, depending on the nature of the business.

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Cletus

6 months ago

D) Financial asset account categories

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Lemuel

7 months ago

C) The purpose and objective of the valuation

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Shalon

7 months ago

B) The quantity and quality of available data

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Ira

7 months ago

A) The experience and judgment of the analyst

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Mattie

8 months ago

True, but I think the quantity and quality of available data should be the most important factor. If the data is incomplete or unreliable, it doesn't matter how experienced the analyst is.

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Oretha

8 months ago

But what about the experience and judgment of the analyst? Surely that plays a big role in deciding which method to use, even if the purpose of the valuation is clear.

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Jame

8 months ago

I agree. The purpose of the valuation, whether it's for taxation, financing, or some other reason, should guide the selection of the asset-based approach.

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Nida

8 months ago

I think this is a tricky question. The purpose and objective of the valuation should be a key factor in determining the appropriate asset-based method to use, not an exception.

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