CGA Appraisal Methodology & Report Writing 3

Question 1

Which type of value is most appropriate for a divorce settlement appraisal?

Accepted Answer

Fair market value

Answer

Divorce settlements typically require fair market value because it represents what the asset would realistically fetch between informed, willing parties in the open market.

Question 2

A 'recourse appraisal' in the jewelry industry typically refers to:

Accepted Answer

An appraisal that provides a value above which the insurer can seek recovery

Answer

A recourse appraisal sets a ceiling value for insurance purposes, above which the insurer may seek recovery from the jewelry dealer or manufacturer.

Question 3

The effective date of an appraisal report is best defined as:

Accepted Answer

The date to which the value opinion applies

Answer

The effective date is the specific date to which the appraiser's value opinion applies, which may or may not coincide with the report date.

Question 4

When writing a jewelry appraisal report, the description of a diamond should include which of the following groups of characteristics?

Accepted Answer

Color, clarity, carat weight, and cut grade

Answer

The four Cs — color, clarity, carat weight, and cut — are the standard grading characteristics that must be documented for diamonds in an appraisal report.

Question 5

Under USPAP, which of the following is a required element of a complete appraisal report for personal property?

Accepted Answer

A statement of the purpose and intended use of the appraisal

Answer

USPAP requires that every appraisal report clearly state the purpose of the appraisal and its intended use, as this defines the scope and type of value to be reported.

(CGA) Certified Gemologist Appraiser Practice Test

(CGA) Certified Gemologist Appraiser Practice Test

CGA Appraisal Methodology & Report Writing 3