ABV Exam Chapter 8 Questions & Answers 2024/2025
Which is NOT a purpose for valuing intangible assets in financial reporting?
a. business combinations under acquisition method
b. financing the development of the intangible asset
c. goodwill impairment
d. impairment on disposal of long-li...
Which is NOT a purpose for valuing intangible assets in financial reporting?
a. business combinations under acquisition method
b. financing the development of the intangible asset
c. goodwill impairment
d. impairment on disposal of long-lived assets - ANSWERSb. financing the development of the intangible
asset.
Which is the primary method for valuing trade names?
a. capitalization of cash flows
b. guideline transaction
c. replacement cost method
d. relief from royalty - ANSWERSd. relief from royalty
For a definite-lived intangible asset, the valuation analyst should always consider
a. terminal value
b. capitalization rate
c. capital structure
d. RUL - ANSWERSd. RUL (remaining useful life)
Which is not an intangible asset?
a. mining right
, b. copyright
c. market share
d. contract - ANSWERSc. market share
Which may NOT be a characteristic of intangible assets?
a. may be bought, sold, licensed, or rented and are subject to the rights of private ownership
b. are developed through the passage of time and are not typically created at an identifiable time
c. may have a determinate life established by law, by contract, or by economic behavior
d. can be purchased or developed internally - ANSWERSb. are developed through the passage of time
and are not typically created at an identifiable time
Per paragraph 36 of VS section 100, what are the three frequently used market approaches for
intangibles? - ANSWERS1. comparable uncontrolled transactions method
2. comparable profit margin method
3. relief from royalty method
Which is not one the three frequently used market approach methods for intangibles?
a. guideline public company method
b. comparable uncontrolled transactions method
c. comparable profit margin method
d. relief from royalty method - ANSWERSa. guideline public company method
The replacement cost method to valuing intangible assets is generally used to value
a. an assembled workforce
b. covenants not to compete
c. tradenames
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