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NACVA Accredited Valuation Analyst Exam Questions 86–90 (page: 19)

Updated On: 9-Feb-2026

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



The analyst should compare the backlog on the valuation date with that on previous dates. Such comparison, especially with the backlog one year prior to the valuation date, is one of:

  1. The company’s future prospects
  2. Indication of process continuous process delay
  3. The company’s order blockage phenomenon
  4. The future availability of suppliers

Answer(s): A



The business’s capital requirements play a part in the valuation because they are an integral part of estimating net cash flow and dividend-paying capacity. Capital requirements include such items EXCEPT:

  1. Capital expenditures
  2. Remedying deferred maintenance
  3. Increasing working capital
  4. Decreasing prepaid expenses

Answer(s): D



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