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ABV Accredited in Business Valuation VIP Practice Exam
ABV — The ABV (Accredited in Business Valuation) credential is issued by the AICPA to licensed CPAs who demonstrate expertise in business valuation; the computer-based exam consists of approximately 115 multiple-choice questions across four content domains (Professional Responsibilities, Valuation Approaches & Methods, Reporting, and Applications) with a 4-hour time limit and a passing score of 75%.
30
Questions
240m
Time Limit
75.00%
To Pass
Question 1 of 30👑 VIP
A valuation analyst is engaged to value a 20% minority interest in a closely held manufacturing company for estate tax purposes. The analyst first determines a control-level value using the guideline public company method, then applies a discount for lack of control (DLOC) and a discount for lack of marketability (DLOM). Which sequence correctly describes the mathematical relationship between these levels of value? The company's enterprise value on a marketable, controlling basis is $10 million. After applying a 20% DLOC, the marketable minority value is $8 million. A 30% DLOM is then applied to arrive at the nonmarketable minority value.
Questions 2–30 and full explanations are VIP-exclusive.