Free ABV Exam Braindumps (page: 23)

Page 22 of 87

list can yield insight into the company's profitability, liquidity and even viability. However, many relatively small companies do not prepare them.

  1. Receivables list
  2. Aged receivables list
  3. Prepaid expense list
  4. Inventory list

Answer(s): B



The amount of detail desired in the inventory list varies from one appraisal to another, depending upon:

  1. The inventory's importance to the valuation conclusion
  2. The company's write-down value
  3. To the extent to which inventory accounting methods vary within particular industry
  4. The amount of inventory data to be gathered

Answer(s): A,C



A valuation of the assets can even be important in _ in which a weighted average cost of capital method is used if the analyst uses the asset base as a determinant of the amount of debt that the company can support.

  1. Labor-intensive companies
  2. Capital-intensive companies
  3. Blue chip companies
  4. Growth companies

Answer(s): B



When it comes to related party transactions, it is important that the analyst gather:

  1. As much information as is available in order to determine the nature of the transactions and their propriety
  2. Related part transactions information
  3. The list prepared that describes the terms of the transactions
  4. Information regarding loans to and from related parties, leases, or purchases

Answer(s): A






Post your Comments and Discuss Financial ABV exam with other Community members:

ABV Discussions & Posts