BCA BCA Business Asset Identification & Classification

Question 1

In BCA practice, which category best describes a company's brand name and customer relationships?

Accepted Answer

Intangible assets

Answer

Tangible personal property

Answer

Real property

Answer

Current liabilities

Question 2

When a BCA appraiser identifies 'furniture, fixtures, and equipment' (FF&E), these are classified as:

Accepted Answer

Tangible personal property

Answer

Real property improvements

Answer

Goodwill components

Answer

Deferred revenue

Question 3

Which of the following represents 'enterprise goodwill' in a BCA context?

Accepted Answer

Value attributable to the business entity independent of any specific individual

Answer

Value attributable solely to the owner's personal reputation

Answer

The market value of physical assets

Answer

Accounts receivable balances

Question 4

A BCA appraiser must distinguish between real property and personal property when valuing a manufacturing plant. Why is this distinction important?

Accepted Answer

Different valuation specialists, standards, and sometimes legal jurisdictions apply to each

Answer

Personal property depreciates faster for tax purposes only

Answer

Real property always has higher value

Answer

The distinction affects only the scope of the engagement letter

Question 5

Which asset type would a BCA appraiser most likely classify as a 'financial asset'?

Accepted Answer

Accounts receivable and marketable securities

Answer

Leasehold improvements

Answer

Assembled workforce

Answer

Production machinery

Question 6

In the context of BCA asset identification, what does 'assembled workforce' represent?

Accepted Answer

An intangible asset reflecting the value of trained employees in place

Answer

A union labor contract

Answer

The company's HR software system

Answer

Payroll liabilities