NACVA Exam CVA Topic 3 Question 96 Discussion

Actual exam question for NACVA's Certified Valuation Analysts exam

Question #: 96
Topic #: 3

[All Certified Valuation Analysts Questions]

The work-in-process inventory of a professional service firm is essentially the unbilled receivables of the firm. Therefore, the same net realizable value rules discussed with respect to accounts and notes receivable would apply to this asset as well. With regard to tangible merchandise inventory, there are some common valuation methods such as:

AThe cost of reproduction method

BThe income expenditure method

CThe comparative sales method

DA and C

Show Suggested Answer

Suggested Answer: D

by Cherelle at Sep 17, 2024, 06:13 AM

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Louisa

3 days ago

I would go with option D, as it includes both the cost of reproduction and comparative sales methods.

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Malcom

4 days ago

I believe the net realizable value rules should apply to this asset.

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Madonna

5 days ago

I agree, it's like the firm's unbilled receivables.

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Louisa

7 days ago

I think the work-in-process inventory is important for a service firm.

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Frederick

7 days ago

This is a tricky one, but I think D is the way to go. The income expenditure method doesn't really seem relevant for tangible merchandise inventory.

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Fausto

17 days ago

B sounds like it might be more applicable to something like real estate valuation. I'm going with D – A and C.

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Jeanice

7 days ago

I agree, B does sound more applicable to real estate. I also chose D – A and C.

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Leonida

23 days ago

A and C seem like the most logical options here. The cost of reproduction method and the comparative sales method are commonly used for valuing tangible merchandise inventory.

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Ryann

1 days ago

The cost of reproduction method and the comparative sales method are commonly used in this case.

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Tamala

5 days ago

I agree, A and C are the most logical options for valuing tangible merchandise inventory.

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