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Financial ABV Exam
Accredited in Business Valuation (ABV) (Page 4 )

Updated On: 12-Jan-2026
Page 4 of 70
PDF with 344 Questions

When using the elements of both the asset accumulation method and the capitalized earnings method in the same valuation, the analyst should pay particular attention to the selection of:

  1. The required rates of return
  2. The capitalization rates used in the excess earning component of the valuation
  3. Identification of assets and liabilities on cost basis
  4. Both A and B

Answer(s): D



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

  1. The experience and judgment of the analyst
  2. The quantity and quality of available data
  3. The purpose and objective of the valuation
  4. Financial asset account categories

Answer(s): D



It is the collective revaluation of all of the company's assets and liabilities. This analysis is usually conducted through the application of the capitalized excess earning method.
This is a general method in:

  1. Market based approach
  2. Asset based approach
  3. Liquidity approach
  4. Asset accumulation method

Answer(s): B



Based on the purpose and objective of the valuation, the analyst will apply the appropriate standard of value to the subject equity interest. The standard of value for the individual assets and liabilities may be different from the standard of value for the subject equity interest. For example:

  1. The analyst may apply the fair market value standard to the individual assets and liabilities even though a different standard of value is determined for the subject equity interest
  2. The asset accumulation method will typically indicate the value of 100 percent of the subject company
  3. The analyst may apply the fair market value standard to corporate assets even though the same standard of value is determined for the subject equity interest
  4. The analyst can apply the "axiomatic assets minus liabilities" to indicate the value of the subject business enterprise

Answer(s): A



indicates that the collective going-on concern value of the total subject entity is less than the sum of the individual values of the entity's total tangible assets.

  1. Goodwill
  2. Positive goodwill
  3. Negative goodwill
  4. Trademarks

Answer(s): C



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