Certified Valuation Analyst (CVA) Practice Exam

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Prepare for the Certified Valuation Analyst (CVA) Test. Study with flashcards and multiple choice questions. Each question includes hints and explanations to help you get ready for your exam!

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Is Revenue Ruling 59-60 applicable only to tax valuations?

True
False
Only for corporate tax valuations
Only for personal tax valuations

The correct answer is: False

Revenue Ruling 59-60 is a significant document that provides guidelines for valuing closely held businesses. It is designed to assist in establishing fair market value for various purposes, not just for tax valuations. The ruling outlines factors and considerations applicable in a range of scenarios, including legal disputes, mergers and acquisitions, and financial reporting, in addition to tax-related situations. This broad applicability makes it clear that the ruling is not restricted solely to tax valuations. Recognizing its relevance in different contexts is crucial for valuation professionals, ensuring they can provide accurate and compliant valuations across various engagements. Understanding this is essential for a Certified Valuation Analyst, as it underscores the comprehensive nature of the guidelines set forth in Revenue Ruling 59-60 and their importance in the practice of business valuation.