Certified Valuation Analyst (CVA) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Certified Valuation Analyst Exam. Enhance your skills with flashcards and multiple-choice questions, complete with hints and explanations. Begin your journey to becoming a certified professional!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

True or False: Revenue Procedures define fair market value.

True
False
Only partially true
True in some states

The correct answer is: False

Revenue Procedures do not explicitly define fair market value; instead, they provide guidance on how the IRS will interpret and apply certain tax laws and regulations. Fair market value is generally understood as the price that property would sell for on the open market, under normal conditions, between a willing buyer and a willing seller. The concept of fair market value is more broadly established in tax law and financial reporting standards rather than being strictly outlined in Revenue Procedures. While Revenue Procedures may discuss how to approach fair market value in specific contexts, they do not serve as the definitive source for its definition. Therefore, the answer is accurately marked as false.