100+ Free CVA Practice Questions

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Question 1

Score: 0/0

The Weighted Average Cost of Capital (WACC) blends:

The average of all equity risk premiums available in the market

Only the cost of debt and preferred stock

The cost of equity and the after-tax cost of debt, weighted by their proportions in the capital structure

The risk-free rate and the inflation rate

to track

2026 Statistics

Key Facts: CVA Exam

~85%

Pass Rate

NACVA 2024 data

400

Exam Questions

Multiple-choice format

$625

Exam Fee

NACVA certification fee

4,633

Active CVAs

NACVA 2024

5 hours

Exam Duration

Proctored examination

Content Domains

Core Body of Knowledge

The CVA exam consists of 400 multiple-choice questions across 9 domains, with a 5-hour time limit and a $625 exam fee. Candidates must hold a qualifying license (CPA, ASA, etc.) or a business degree with valuation experience. In addition to passing the proctored exam, candidates must complete a case study demonstrating applied valuation experience. Approximately 4,633 professionals hold active CVA credentials. The pass rate is approximately 85%.

Sample CVA Practice Questions

Try these sample questions to test your CVA exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which standard of value is most commonly used for federal tax purposes, such as estate and gift tax valuations?

A.Investment value

B.Fair market value

C.Intrinsic value

D.Strategic value

Explanation: Fair market value (FMV) is the standard defined by IRS Revenue Ruling 59-60 as the price at which property would change hands between a willing buyer and willing seller, neither being under any compulsion to act and both having reasonable knowledge of relevant facts. It is the standard required for estate tax, gift tax, and most other federal tax valuation purposes.

2A going concern premise of value assumes that:

A.The business will be liquidated in an orderly fashion

B.The business will continue operating indefinitely

C.Only tangible assets have value

D.The business is being sold under duress

Explanation: The going concern premise assumes the business entity will continue to operate as an ongoing enterprise. This premise typically yields a higher value than liquidation because it captures the value of intangible assets, customer relationships, and the assembled workforce that would be lost in liquidation.

3Which level of value represents a non-controlling, non-marketable interest?

A.The highest level in the levels of value framework

B.A freely traded minority interest on a public exchange

C.The lowest level in the levels of value framework

D.A controlling interest in a publicly traded company

Explanation: A non-controlling, non-marketable interest sits at the lowest level of the levels of value framework. It lacks both the ability to influence company decisions (control) and the ability to easily convert the interest to cash (marketability). This is typical of minority interests in closely held private companies.

4Under NACVA Professional Standards, what is the minimum requirement for a valuation analyst's independence?

A.The analyst must have no financial interest in the subject company under any circumstances

B.The analyst must disclose any known conflicts of interest and maintain objectivity

C.The analyst must be a CPA in good standing

D.The analyst must obtain approval from the IRS before starting an engagement

Explanation: NACVA Professional Standards require that a valuation analyst disclose any actual or perceived conflicts of interest and maintain objectivity throughout the engagement. While independence is important, the standards focus on disclosure and professional judgment rather than an absolute prohibition on any financial relationship.

5Which type of valuation report provides the most comprehensive level of detail and analysis?

A.Calculation engagement

B.Restricted appraisal report

C.Detailed report (full written report)

D.Oral report

Explanation: A detailed (full written) report provides the most comprehensive analysis, including complete descriptions of the company, industry, methodology, assumptions, and conclusions. It is typically required for litigation, regulatory filings, and situations where the report must withstand scrutiny from opposing experts or regulatory bodies.

6An engagement letter for a business valuation should include all of the following EXCEPT:

A.The standard of value and premise of value

B.A guarantee of the final value conclusion

C.The purpose and intended use of the valuation

D.Fee arrangements and billing terms

Explanation: A valuation engagement letter should never include a guarantee of the final value conclusion. The analyst's role is to provide an objective, independent opinion of value. Including a predetermined value conclusion would compromise the analyst's independence and violate professional standards.

7What is the primary purpose of defining the valuation date in an engagement?

A.To determine the billing rate for the engagement

B.To establish the specific point in time as of which the value opinion applies

C.To set the deadline for delivering the report

D.To determine which accounting standards to apply

Explanation: The valuation date (also called the date of value or effective date) establishes the specific point in time as of which the value opinion is rendered. All economic conditions, financial data, and market information used in the valuation should reflect conditions known or knowable as of this date. This is a fundamental principle of valuation.

8When analyzing the economic environment for a valuation, which factor is classified as a macro-environment consideration?

A.The subject company's product mix

B.National GDP growth rates and inflation trends

C.The company's management team experience

D.The subject company's customer concentration

Explanation: National GDP growth rates and inflation trends are macro-environment factors that affect all businesses within an economy. Macro-environment analysis examines broad economic conditions including interest rates, unemployment, GDP growth, inflation, and monetary policy that establish the context for the valuation.

9A SWOT analysis in a business valuation examines:

A.Standard Worksheets on Taxation

B.Strengths, Weaknesses, Opportunities, and Threats

C.Statistical Weights of Transactions

D.Summary of Weighted Operating Totals

Explanation: SWOT analysis evaluates the subject company's internal Strengths and Weaknesses and external Opportunities and Threats. It is a key component of qualitative analysis in business valuation that helps the analyst understand the company's competitive position and future prospects.

10In financial statement analysis, what does a common-size income statement express each line item as a percentage of?

A.Total assets

B.Net income

C.Revenue (net sales)

D.Shareholders' equity

Explanation: A common-size income statement expresses each line item as a percentage of revenue (net sales). This allows for comparison across different time periods and between companies of different sizes, making it easier to identify trends in cost structure, margins, and profitability.

About the CVA Exam

The Certified Valuation Analyst (CVA) exam is a 400-question, five-hour proctored examination administered by NACVA. It tests competency across nine domains of business valuation knowledge — from income, market, and asset approaches to cost of capital, discounts and premiums, professional standards, and special-purpose valuations. The CVA is the only business valuation credential accredited by both the NCCA and ANAB.

Questions

400 scored questions

Time Limit

5 hours

Passing Score

Psychometric cut score set by VCB

Exam Fee

$625 (NACVA (National Association of Certified Valuators and Analysts))

CVA Exam Content Outline

4.0%

Overview

Purpose of valuation, standards of value, premises of value, principles, and levels of value

7.5%

Professional Responsibilities and Standards

Scope of services, ethical principles, reporting/review standards, and dispute resolution responsibilities

4.5%

Engagement Acceptance and Planning

Defining the engagement, engagement letters, acceptance criteria, and conflict of interest

9.5%

Qualitative Analysis

Economic environment, industry background, company background, SWOT analysis, and information sources

16.5%

Quantitative Analysis

Financial statement analysis, normalizing adjustments, statistical analysis, and benefit stream selection

26.0%

Valuation Approaches

Income approach (DCF, capitalization), market approach (guideline companies, transactions), asset approach, sanity checks, and reconciliation

17.5%

Cost of Capital Concepts and Methodology

CAPM, build-up method, WACC, capitalization rates, beta, risk premiums, and pricing models

10.0%

Discounts, Premiums, and Other Adjustments

DLOM, DLOC, control premiums, levels of value, marketability issues, and key-person adjustments

4.5%

Special Purposes and Circumstances

Intangible assets, debt/convertible securities, preferred stock, stock options, and professional goodwill

How to Pass the CVA Exam

What You Need to Know

Passing score: Psychometric cut score set by VCB
Exam length: 400 questions
Time limit: 5 hours
Exam fee: $625

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

CVA Study Tips from Top Performers

1Focus heavily on Valuation Approaches (26% of exam) — master income, market, and asset methods

2Know CAPM, build-up, and WACC formulas cold — Cost of Capital is 17.5% of the exam

3Understand DLOM and DLOC conceptually and mathematically — discounts/premiums are 10%

4Review Revenue Ruling 59-60 and NACVA Professional Standards thoroughly

5Practice normalizing financial statements — discretionary, non-recurring, and control adjustments

6Study the difference between capitalization and discounting methods for the income approach

Frequently Asked Questions

How many questions are on the CVA exam?

The CVA proctored exam consists of 400 multiple-choice questions designed to measure competency across nine domains defined in NACVA's Core Body of Knowledge for Business Valuations. You have 5 hours to complete the exam. It is administered via computer-based testing at testing centers or through live remote proctoring via Kryterion.

What is the CVA exam pass rate?

According to NACVA's published statistics, approximately 85% of candidates pass the proctored exam on their first attempt. In 2024, 300 out of 344 exam-takers passed. The passing score is determined through a psychometric cut score study conducted by the Valuation Credentialing Board (VCB).

What are the CVA certification requirements?

CVA candidates must: (1) hold a qualifying license such as CPA, ASA, or CBV, OR hold a business degree with substantial valuation experience; (2) complete education requirements; (3) pass the 400-question proctored exam; (4) complete a case study or submit an actual valuation report; and (5) provide professional and business references. An optional 5-day training course is available.

How long should I study for the CVA exam?

Most candidates study 150-250 hours for the CVA exam. NACVA offers an optional 5-day Business Valuation Certification and Training Center (BVTC) course that covers approximately 40 hours of instruction. Additional self-study of the Core Body of Knowledge, practice questions (NACVA offers a 1,200-question Q&A study guide), and review of valuation standards is recommended.

What is the difference between CVA and ABV credentials?

The CVA (Certified Valuation Analyst) is administered by NACVA and open to CPAs, ASAs, and qualified business professionals. The ABV (Accredited in Business Valuation) is issued by the AICPA and restricted to CPAs only. The CVA exam has 400 questions over 5 hours, while the ABV has a different format. Both are respected business valuation credentials, but the CVA is the only one accredited by both NCCA and ANAB.

Can non-CPAs earn the CVA certification?

Yes. While CPAs can apply directly, non-CPAs must hold a business degree (management, economics, finance, marketing, accounting, or MBA) from an accredited institution and demonstrate substantial experience in business valuation through business references or employer attestations. Non-CPAs follow a slightly different application process but take the same exam.