Question 1

When considering valuation, there are only two premise that can be considered. They are:

Accepted Answer

A)   Bankruptcy and going concern.
B)   Bankruptcy and liquidation.
C)   Liquidation and going concern.
D)   Market value and book value.

Question 2

Projected free cash flow to equity before debt payment is sometimes called:

Accepted Answer

A)   Projected free cash flow available to equity.
B)   Debt-free cash flow available to equity.
C)   Equity-free cash flow available to debt.
D)   Pre-debt cash flow available to equity.

Question 3

Which of the following not an adjustment factor?

Accepted Answer

A)   The extent of ownership control over income-producing assets.
B)   Current physical conditions.
C)   Restrictions on transferability.
D)   Marketability and liquidity.

Question 4

Investment value is normally determined by analytical methods that seek to find the "true value" or the "underlying value" of an asset.

Accepted Answer

A) True 
 B)False

Question 5

The fundamental value of an asset can be determined by:

Accepted Answer

A)   Analytical methods that seek to find the "true value" or the "underlying value" of an asset.
B)   Researching its replacement value and then deducting its depreciation from it.
C)   Looking at its book value on the balance sheet.
D)   Reducing the cost of purchase for an asset by a MACRS table from the IRS.

Question 6

Projected free cash flow available to equity (FCFE) , is defined as the amount of cash available to shareholders after:

Accepted Answer

A)   All liabilities are paid.
B)   All assets are liquidated.
C)   All expenses, reinvestment, and debt and preferred dividend payments.
D)   All of the above.

Question 7

Define the general process of valuating a business:

Accepted Answer

Define the valuation assignment
Collect ...

Question 8

Business valuators that have the most credibility will have:

Accepted Answer

A)   A college education.
B)   Credentials from national or international organizations.
C)   Years of experience.
D)   All of the above.

Question 9

Name at least 7 assets that might need appraisal or valuation.

Accepted Answer

Business entities (e.g., proprietorships...

Question 10

Which of the following should a forensic accountant analyze on a businesses financial statements when considering business valuation?

Accepted Answer

A)   Leverage.
B)   Liquidity.
C)   Solvency.
D)   All of the above.

Exam 19: Business Valuation

Business valuators that have the most credibility will have:

Correct Answer
verified

Investment value is normally determined by analytical methods that seek to find the "true value" or the "underlying value" of an asset.

Correct Answer
verified

Define the general process of valuating a business:

Correct Answer
verified
Define the valuation assignment
Collect ...
View Answer

Projected free cash flow to equity before debt payment is sometimes called:

Correct Answer
verified

When considering valuation, there are only two premise that can be considered. They are:

Correct Answer
verified

Which of the following should a forensic accountant analyze on a businesses financial statements when considering business valuation?

Correct Answer
verified

Projected free cash flow available to equity (FCFE) , is defined as the amount of cash available to shareholders after:

Correct Answer
verified

The fundamental value of an asset can be determined by:

Correct Answer
verified

Name at least 7 assets that might need appraisal or valuation.

Correct Answer
verified
Business entities (e.g., proprietorships...
View Answer

Which of the following not an adjustment factor?

Correct Answer
verified

Exam 19: Business Valuation

Business valuators that have the most credibility will have:

Correct AnswerverifiedShow Answer

Investment value is normally determined by analytical methods that seek to find the "true value" or the "underlying value" of an asset.

Correct AnswerverifiedShow Answer

Define the general process of valuating a business:

Correct AnswerverifiedDefine the valuation assignmentCollect ...View AnswerShow Answer

Projected free cash flow to equity before debt payment is sometimes called:

Correct AnswerverifiedShow Answer

When considering valuation, there are only two premise that can be considered. They are:

Correct AnswerverifiedShow Answer

Which of the following should a forensic accountant analyze on a businesses financial statements when considering business valuation?

Correct AnswerverifiedShow Answer

Projected free cash flow available to equity (FCFE) , is defined as the amount of cash available to shareholders after:

Correct AnswerverifiedShow Answer

The fundamental value of an asset can be determined by:

Correct AnswerverifiedShow Answer

Name at least 7 assets that might need appraisal or valuation.

Correct AnswerverifiedBusiness entities (e.g., proprietorships...View AnswerShow Answer

Which of the following not an adjustment factor?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Define the valuation assignment
Collect ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Business entities (e.g., proprietorships...
View Answer

Correct Answer
verified