s

1.Which statement best describes the concept of “Market Value” in asset

valuation?
A) A predetermined price regulated strictly by government authorities.
B) The estimated price agreed upon by a willing buyer and a willing seller in an
informed, voluntary transaction.
C) The maximum price that any investor would be forced to pay under urgent circumstances.
D) The historical cost of acquiring the property, adjusted for inflation.

2.A “Valuer” is best described as:

A) An individual or organization that always sets the highest possible price for an asset.
B) A firm specializing in real estate transactions, without any ethical standards.
C) A qualified professional or firm with the necessary qualifications, objectivity,
and competence to estimate asset value.
D) Any person who can guess an asset’s price based on intuition alone.

3.“ Value” refers to an estimated price that does not necessarily reflect open
market conditions but instead focuses on special characteristics, such as forced
sale or specific buyer interests.
A) Market
B) Non-market
C) Investment
D) Replacement
5.In the valuation process, why is the “Principle of Demand and Supply”
crucial?
A) It guarantees that government taxes will always be included in the market price.
B) It helps determine how many suppliers are willing to sell at a regulated price.
C) It shows that the value of an asset rises with increasing demand and limited supply, and
vice versa.
D) It is irrelevant because the valuer’s personal opinion is the only factor in pricing.

7.Which of the following best defines the “Valuation Process” ?

A) A random guesswork activity based on the valuer’s personal intuition.
B) A fixed set of regulations created solely for taxation purposes.
C) A series of systematic steps from identifying the asset, collecting data, analyzing,
and reporting results.
D) An informal negotiation between buyer and seller without documentation.

8.The International Valuation Standards (IVS) and Vietnam Valuation

Standards (VVS) emphasize ethical requirements for valuers, including
independence, integrity, and _ .
A) Subjectivity
B) Confidentiality
C) Laziness
 9.When determining the best use of a piece of land in a growing urban area,
which principle would you most likely apply?
A) The Principle of Balance, to ensure the land has perfect landscaping details.
B) The Principle of Highest and Best Use, to find the legally and financially optimal utilization.
C) The Principle of Substitution, to compare with similar abandoned lots.
D) The Principle of Diminishing Returns, to limit how many investors can purchase it.

10.A property has been inherited by multiple family members with conflicting
goals. Some want to sell quickly while others want to wait for a higher price.
From a valuer’s standpoint, which concept becomes most relevant?
A) Non-market value, because no standard approach can handle disputes.
B) Market value, focusing on the property’s likely price under typical, willing-buyer-and-
seller conditions.
C) Forced sale value, assuming an immediate mandatory auction.
D) Historical cost approach, relying solely on original purchase data.

11.Which statement correctly describes the “Principle of Change” in the context of

valuation?
A) Asset value remains constant once initially determined.
B) Valuers must assume external factors have no impact on future prices.
C) Asset value can vary over time due to changes in market conditions and other
influencing factors.
D) The principle of change is irrelevant to real property valuations
12.The approach in valuation is often used when there is sufficient market data
on similar, recently sold properties, allowing direct comparison of prices.
A) Cost
B) Income
C) Market (Comparative)
D) Forced Sale

13.Which is the main purpose of “Valuation Standards” (IVS, VVS) mentioned

in the document?
A) To mandate that every valuer must charge the same fees.
B) To provide a framework ensuring consistency, transparency, and reliability in the
valuation process.
C) To eliminate any need for professional judgment by the valuer.
D) To prevent private entities from buying or selling assets freely.

15.A buyer needs a quick purchase within a week due to personal

circumstances, and this urgency might affect the transaction price. , how would
a standard market value assessment treat this situation?
A) Market value would remain the same because forced or urgent conditions are
typically excluded from standard market value assumptions.
B) The valuer would lower the market value to accommodate the buyer’s situation.
C) The valuer would assume the property is sold at a higher non-market value.
D) The valuer would consider the transaction void, as urgent sales cannot be valued.
17.Which statement best describes the “Principle of Competition” in asset
valuation?
A) It states that competition among bidders always inflates an asset’s market value indefinitely.
B) It implies that excessive profits attract new competitors, which eventually can drive
returns down.
C) It forbids any valuer from considering comparative properties in the same neighborhood.
D) It requires all valuers to eliminate outliers when evaluating transaction prices.

18.In determining whether a property meets the criteria for its “highest and
best use,” the valuer must ensure the use is not only legally permissible and
financially feasible but also appropriate, given prevailing market conditions.
A) Historically
B) Ethically
C) Socially and physically
D) Temporarily

19.
A valuer is tasked with appraising a specialized manufacturing facility that has very few direct
comparables. Which of the following best outlines a rigorous approach?
A) Apply the market approach only, using data from residential sales in the same district.
B) Adopt a purely speculative method based on the owner’s desired selling price.
C) Combine the cost approach (to estimate replacement cost) with adjustments for
functional obsolescence and consult any limited market evidence.
D) Use the forced sale value approach and ignore all intangible factors.
20.
Which scenario most accurately reflects the of “Non-Market Value” in the document?
A) A transaction where a buyer is well-informed and pays an over-market price out of
emotional preference.
B) A transaction subjected to open public bidding among multiple interested parties.
C) A scenario where the seller has no urgency to close the deal, resulting in a price aligned
with fair market levels.
D) A company’s internal valuation for a highly specialized machine, used exclusively for a
niche process.

21.
The Principle of Contribution states that the value of a component within a larger asset depends
on:
A) Its stand-alone market price, independent of other factors.
B) How significantly its presence (or absence) affects the total value or income generated by
the entire asset.
C) The valuer’s personal opinion of its aesthetics.
D) Any random external factor without correlation to the asset’s overall functionality.

22.
In valuation theory, the concept of “Excess Earnings” is most commonly associated with the
approach, particularly when identifying the portion of earnings attributable to
intangible assets.
A) Market
B) Cost
C) Income
D) Forced liquidation
23.
When the document mentions the “Principle of Income Increase or Decrease,” which core idea is
it highlighting?
A) An asset’s value only increases over time if the owner invests more.
B) There is a point at which additional investments yield diminishing incremental returns
on income.
C) Income never stabilizes; it fluctuates unpredictably and cannot be valued.
D) Valuation should only be based on the asset’s purchase price plus annual income.

24.
Which of the following factors would most likely require adjustments when applying the
Market Approach to value a property in an international context?
A) Minor differences in room color and interior decoration.
B) Variations in currency exchange rates, local interest rates, and political risk.
C) The seller’s personal preference for closing the deal earlier.
D) The valuer’s assumption that all global real estate markets behave identically.

25.
A retail complex is situated in a location with rapidly changing demographic trends, shifting
consumer behavior, and ongoing urban redevelopment. Which principle(s) would a valuer
heavily factor in to accurately appraise it?
A) Principle of Change and Principle of Highest and Best Use.
B) Principle of Substitution only, ignoring socioeconomic shifts.
C) Principle of Balance only, focusing on structural components.
D) No principles apply in a rapidly changing area.
26. Scenario-Based
A valuer is engaged to estimate the “Market Value” of farmland. However, the property is under
a strict government regulation that limits its potential for any alternative use (e.g., commercial
development). Which statement is correct?
A) The farmland’s market value might be constrained by legal use restrictions, reflecting
only agricultural potential.
B) The farmland should automatically be valued as though it could be converted into
a commercial project.
C) The valuer can ignore government regulations if the client wants a higher price estimate.
D) The farmland’s value must be estimated purely on the replacement cost of crops.

27.
When reconciling two different valuation approaches (e.g., Market vs. Income) that yield
significantly different results, what must a valuer avoid?
A) Quickly averaging both results without investigating the reasons for the discrepancy.
B) Rigorously analyzing all assumptions and data inputs that led to each outcome.
C) Explaining which approach is more reliable under current market conditions.
D) Seeking additional market data or adjusting methods to resolve gaps.

28.
When an asset is valued for “ ” purposes, the specific legal framework, taxable
value definitions, and local regulations take precedence over standard market valuations.
A) Demonstration
B) Taxation
C) Advertising
D) Community
29.
, why is property valuation considered an “art” as much as a science?
A) Because it ignores all market data in favor of the valuer’s artistic impressions.
B) Because, despite standardized methods, professional judgment is needed to interpret data
and reconcile different approaches.
C) Because valuers are encouraged to paint or draw the properties for aesthetic evaluation.
D) Because no scientific approaches exist for property value calculations.

30.
A potential buyer in an international setting notices that a property’s “market value” in Country
X differs significantly from its “market value” in Country Y, despite similar property types.
Which key explanation aligns with the document’s guidelines on market value?
A) Market value is universal and should never differ by jurisdiction.
B) The two values differ due to each market’s distinct supply-demand dynamics,
legal frameworks, and buyer/seller behaviors.
C) One of the valuations is necessarily incorrect if they differ.
D) Country-level valuation standards are irrelevant to any property’s market value.

1. Which statement best defines “Real Estate” ?

A) Any intangible asset, including copyrights and patents
B) Land and all permanent attachments above or below the ground
C) Only the surface of the land, excluding air rights
D) A leasehold interest restricted to residential usage

2. Analysis (Medium)
The term “Freehold” typically implies:
A) A limited ownership right that ends after a fixed term
B) An ownership right with strict limitations on how to use the land
 C) Absolute ownership in perpetuity, subject to legal constraints
D) Ownership that can never be leased or sub-leased

3. Fill in the Blank (Medium)

The area (GIA) is measured to the internal face of the perimeter walls at
each floor level, often used for valuation of warehouses and department stores.
A) Gross External
B) Net Internal
C) Gross Internal
D) Structural Footprint

4. Definition (Medium)
Which of the following describes “Market Rent (MR)” as mentioned in the document?
A) The historical rental price without any adjustments for current market trends
B) The estimated amount for which a property should lease under fair,
knowledgeable, and voluntary conditions
C) The rent fixed by law without considering supply and demand
D) A one-time fee paid by the tenant to occupy land for agricultural use only

5. Application (Medium)
A freeholder decides to lease out a portion of land to a tenant for 10 years. Which
statement applies based on the document’s explanation?
A) Once a lease is granted, the freeholder loses all rights to the property
B) The tenant (lessee) and the freeholder (lessor) enter a legal agreement specifying
rent and obligations
C) Freehold and leasehold cannot exist simultaneously on the same parcel of land
D) After granting a lease, the freeholder’s interest automatically terminates after 5 years
6. Fill in the Blank (Medium)
In a direct sales comparison approach, the must be “recent” and “reflect
current market conditions” to serve as valid evidence.
A) Comparable transactions
B) Forced sale data
C) Historical building permits
D) Mortgage documents

7. Analysis (Medium)
What is the principal rationale behind the “Market (Sales) Comparison Approach” to real
estate valuation?
A) It assumes no buyers or sellers exist, so historical cost is the only factor
B) It calculates value purely based on future potential income
C) It uses sales of comparable properties as evidence of how the subject property may
be valued in an open market
D) It relies on government-imposed price ceilings rather than open market data

8. Definition (Medium)
Which factor below is not listed among the “factors affecting property values” in the
document?
A) Fashion and local demand
B) Government policies
C) Astrological sign of the property’s first owner
D) Geographic location and infrastructure

9. Fill in the Blank (Medium)

In the Cost Approach, the valuer typically takes the market value of the land and adds the
of the improvements, then subtracts accrued depreciation to estimate
the property’s worth.
A) Forced sale value
 B) Forecasted market rent
C) Replacement or reproduction cost
D) Mortgage balance

10. Application (Medium)

If a specialized school building with no active comparable sales is being valued, which
method from the document would most likely be used first?
A) The Market (Sales) Comparison Approach
B) The Cost Approach
C) A purely historical approach ignoring current construction costs
D) The Gross Rent Multiplier (GRM) method

11. Definition (Medium)

Which of the following describes “Physical Obsolescence” in the Cost Approach?
A) Loss of value due to external economic changes
B) Loss of utility due to design or layout flaws
C) Wear and tear or aging of the structure over time
D) Government restrictions reducing building height

12. Analysis (Medium)

Which statement best captures the principle of the Income Approach to real estate
valuation?
A) Determining value based solely on building replacement cost minus depreciation
B) Calculating value from future cash flows discounted to a present figure
C) Estimating an arbitrary figure based on the owner’s personal preference
D) Summing all previous construction costs without adjusting for current
market conditions
 13. Fill in the Blank (Medium)
In leasehold valuations, a “profit rent” emerges when the market rental value of
a property exceeds the that the lessee must pay to the freeholder.
A) Equitable interest
B) Replacement cost
C) Rate of depreciation
D) Head rent

14. Definition (Medium)

What is the Gross Rent Multiplier (GRM) method as stated in the document?
A) A ratio of market value to annual gross rental income, used to estimate how
many years the property takes to pay for itself
B) A tool to calculate forced-sale discounts only
C) A measure of interest rates applied to short-term leases
D) A direct measure of net operating income minus expenses

15. Analysis (Medium)

When applying the Market (Sales) Comparison Approach, why must adjustments often
be made to comparable transaction prices?
A) Because each transaction is always identical to the subject property
B) To account for differences in location, property condition, and financing
terms between the comparables and the subject
C) So the valuer can manipulate the final value to match the client’s desired outcome
D) To remove any reference to supply and demand in open-market transactions

16. In the Sales Comparison Approach, why is it important for a valuer to

investigate financing terms and any unusual conditions in comparable
transactions?
A) Because all standard market sales have identical financing options
B) To ensure the adjusted sale prices reflect genuine market conditions rather than artificial
high or low prices
C) To eliminate any comparables that were financed by third parties
D) Because the valuer must always favor cash-only transactions

17. What does “Functional Obsolescence” generally refer to in the context of the
Cost Approach?
A) Loss of value due to normal wear and tear over time
B) Loss of value caused by factors external to the property (e.g., economic shifts)
C) The asset’s physical decay that is too expensive to fix
D) A reduction in utility due to outdated design, layout, or technology compared to
modern standards

19. A recently constructed hospital has highly specialized equipment installed and
minimal comparable sales data in the market. , which approach is most logical as a
primary method of valuation?
A) Strictly the Market (Sales) Comparison Approach using outdated transactions
B) Income Approach, ignoring the specialized nature of the property
C) Cost Approach, considering replacement cost of specialized facilities plus land value
D) Gross Rent Multiplier (GRM) method, assuming standard lease market

20. When determining depreciation in the Cost Approach, which statement best captures
the concept of “External Obsolescence”?
A) It arises only from poor structural materials, rendering the building unsafe
B) It results from economic or locational factors beyond the property boundary,
potentially affecting its marketability
C) It is purely cosmetic damage and does not affect valuation
D) It is entirely related to the property’s legal documents
 21. In the Income Approach, the “ ” represents the discount rate or yield rate
at which future cash flows are converted to a present value.
A) Gross Rent Multiplier
B) Capitalization Rate
C) Remaining Economic Life
D) Depreciation Factor

22. Which statement best describes the concept of the “Terminal Value” in a
Discounted Cash Flow (DCF) model for real estate?
A) The initial cost of land plus construction, minus immediate depreciation
B) An assumed final value of the property at the end of the projection period, reflecting
potential resale or reversion
C) A lump-sum payment made by the tenant at the start of a lease
D) The cost of major renovations factored into year one’s cash flow only

23. A valuer wants to use Direct Capitalization to estimate a property’s value. If the net
operating income (NOI) is $120,000 per year and the market-derived cap rate is 8%,
what is the most likely indicated value?
A) $960,000
B) $1,500,000
C) $96,000
D) $120,000 ÷ 0.08 = $1,500,000
 24. In leasehold valuations, a sub-lessee’s rent minus the head rent payable to the
freeholder is known as the rent.
A) Effective
B) Market
C) Net
D) Profit
)

25. A 10-year lease on an office property has a fixed annual head rent of $60,000, while the
open-market rental value is $90,000. There are no rent reviews, and the yield rate is
7%. All else being equal, which approach would the valuer use to calculate the capital
value of the leasehold interest?
A) Multiply the head rent by the lease term and ignore market rent
B) Capitalize the profit rent of $30,000/year for the unexpired term using an appropriate
year’s purchase factor at 7%
C) Use the GRM method and compare it to vacant land
D) Calculate only the forced-sale value of the building
)

26. How might a valuer most appropriately handle a situation where two widely used
valuation approaches (e.g., Market and Income) produce significantly different
value indications?
A) Disregard the approach that yields the lower result and report the higher value
B) Take an arithmetic mean of both outcomes without further investigation
C) Investigate potential reasons for the divergence (e.g., data reliability, assumptions)
and reconcile the results based on stronger evidence
D) Reject both approaches in favor of the forced-sale method

27. An investor is analyzing an office building using a DCF approach over 5 years, with
an expected resale in Year 5. If the discount rate is 10% and the net annual cash flows
are
 relatively stable, which factor is the valuer most likely to consider critical for deriving
the final valuation?
A) The actual construction date of the building’s foundation
B) The Terminal Capitalization Rate applied to the Year 5 net income to estimate resale value
C) The name of the original property developer
D) Excluding all operating expenses from the analysis

28. What is the “Remaining Economic Life (REL)” of a building in the context of the
Cost Approach?
A) The time from appraisal date until the property is no longer legally allowed to exist
B) The difference between actual age and effective age
C) The period from the valuation date to the end of the asset’s profitable or useful functioning
D) The total chronological age of the structure without adjustments for maintenance

29. “ age” refers to how old a property appears to be based on its condition and
maintenance history, which may differ from its actual chronological age.
A) Physical
B) Effective
C) Economic
D) Structural

30. When applying mass appraisal techniques for a large portfolio of residential
properties, which aspect is most crucial to ensure reliable regression-based models?
A) Collecting minimal property characteristics to keep the model simple
B) Applying identical coefficients to all neighborhoods without market segmentation
C) Having a robust dataset of property transactions that accurately reflect variations in
physical attributes and location
D) Only including brand-new properties in the dataset
1. Appraisals of machinery and equipment are needed for a variety of reasons. Which of
the following is not mentioned in the document as a common purpose?
A) Insurance and financing
B) Wedding ceremony arrangements
C) Tax planning and utility rate making
D) Mergers and acquisitions

2. , “microidentification” refers to:

A) The process of grouping equipment into broad categories for accounting.
B) Identifying the brand name, model, serial number, and specific details of a single machine.
C) Consolidating multiple machines into a single line item for convenience.
D) Determining salvage value based on average industry standards.

3. “ age is the apparent age of a property in comparison with a new property of

like kind, considering the actual condition and any overhauls or rebuilds.”
A) Chronological
B) Economic
C) Effective
D) Salvage

4. Which term describes “the period of time a new property will physically endure before
it deteriorates to an unusable condition from purely physical causes, ignoring
obsolescence”?
A) Normal Useful Life
B) Physical Life
C) Economic Life
D) Remaining Useful Life
5. An appraiser finds that a machine is five years old but has been impeccably maintained,
effectively making it behave like a three-year-old machine. Which age measure best captures
this insight?
A) Chronological Age
B) Remaining Useful Life
C) Effective Age
D) Physical Life

6. “ is the estimated period of time during which a property of a certain effective age
is expected to be actually used before it is retired from service.”
A) Remaining Useful Life
B) Remaining Physical Life
C) Remaining Economic Life
D) Salvage Duration

7. If a piece of equipment’s economic life is shorter than its physical life, what is typically
the main reason?
A) Physical deterioration happens sooner than expected.
B) Strict environmental laws force immediate retirement after 1 year of use.
C) Functional or economic obsolescence makes it unprofitable to keep using the equipment
any longer.
D) The manufacturer’s warranty expires early.
8. A pollution abatement facility has an actual physical remaining life of 15 years, but
new regulations require it to be abandoned in 3 years. Which concept does this best
illustrate?
A) Physical Deterioration
B) Economic Obsolescence
C) Functional Overhauls
D) Fixed Depreciation Rate

9. “Functional Obsolescence” in machinery valuation is defined as:

A) The wear and tear from regular use over time.
B) The difference in capability or technology level between a new machine and the
appraised one.
C) Strictly external factors like rising raw material costs.
D) Damage caused by accidents or natural disasters.

10. Which statement best describes the sales comparison approach for valuing movable
property?
A) Calculating how many years remain until salvage.
B) Using detailed discounted cash flows to project future net income.
C) Adjusting recent sale prices of similar assets to account for differences with the subject asset.
D) Applying a standard cost formula based on brand reputation alone.
)

11. , “ ” in valuation terms is the estimated loss in value of an asset compared to a

new asset, encompassing physical deterioration, functional, and economic obsolescence.
A) Depreciation
B) Salvage Value
C) Scrap Cost
D) Incurable Wear
12. Analysis.
Why might an appraiser measure the physical dimensions (length, height, footprint) of a large
conveyor system during microidentification?
A) To calculate internal rate of return (IRR) directly from the equipment’s size
B) Because brand name is irrelevant if the dimensions are known
C) Physical size can affect transport, installation costs, and it distinguishes variants within
the same model line
D) Dimensions are required only if the equipment is older than 20 years

13. Application.
A machine tool has a normal useful life of 20 years. After 10 years, it is still in working
condition, but new technology has rendered it non-competitive in the market. This scenario
primarily reflects:
A) Physical Obsolescence
B) Chronological Wear
C) Effective Age Overhaul
D) Economic Obsolescence

14. Comparison Method.

When applying the sales comparison approach to a piece of machinery, which factor is least
relevant for direct price adjustments?
A) Chronological age vs. effective age
B) Condition, capacity, and features
C) The valuer’s personal brand preference
D) Manufacturer reputation and quality

15. Income Method.

What key question must an investor ask when using the income method to value machinery?
A) “What are the historical acquisition costs recorded by the previous owner?”
B) “How many employees are needed to operate this machine under all regulations?”
C) “How much net cash flow can this machine generate, over how many years, and at what
level of risk?”
D) “Is the brand name of the machine easy to pronounce?”

17. A machine has a physical life of 12 years but is likely to be retired in 8 years due to
rapid changes in technology. Which life measure does this shorter duration represent?
A) Normal Useful Life
B) Remaining Physical Life
C) Economic Life
D) Effective Age

18. When applying the age/life formula for depreciation, if a piece of equipment has an
effective age of 6 years and a total physical life of 15 years, what percentage of
physical deterioration would this formula suggest?
A) 25%
B) 40%
C) 50%
D) 60%

18. “ ” results from external market factors such as increased competition,

labor costs, or regulatory changes that reduce the profitability or demand for the
appraised equipment.
A) Physical Deterioration
B) Technological Obsolescence
C) Economic Obsolescence
D) Functional Overhaul
20. Which statement about “Scrap Value” is most accurate ?
A) It includes all intangible benefits of the equipment
B) It is the amount realized if the property is sold purely for material content rather
than productive use
C) It equals the net operating income discounted at the market rate
D) It always exceeds the salvage value

21. A piece of manufacturing equipment can be profitably operated for 5 more years before
an upgraded model becomes more cost-effective. Which measure is the best indicator of
this time frame?
A) Remaining Physical Life
B) Remaining Useful Life
C) Remaining Economic Life
D) Chronological Age

22. Under the Income Method, what does the discount rate primarily reflect in
machinery valuation?
A) How quickly the equipment physically deteriorates
B) The risk level of not receiving the forecasted returns
C) The brand prestige associated with the manufacturer
D) The salvage rate guaranteed by the local government

23. A prospective buyer of a printing press projects an after-tax net cash flow of
$15,000/year for 7 years and estimates $3,000 salvage at the end. Which approach best
captures how they’d calculate present value?
A) Summing the historical costs and dividing by 7
B) Applying the cost approach to rebuild a brand-new printing press
C) Discounting each year’s $15,000 plus the $3,000 salvage at an appropriate
discount rate
D) Using the effective age to determine depreciation percentage
 24. In the sales comparison approach for machinery, which factor would most directly
impact price adjustments for comparables?
A) The future marketing strategy of the manufacturer
B) Chronological age vs. effective age and overall operating condition
C) The net present value of the entire production line
D) Whether the equipment was originally imported or domestically produced

25. When might a valuer opt not to rely primarily on the sales comparison method to value
a specific machine?
A) If there are numerous recent transactions of identical machines
B) When the machine’s brand name and model are well-documented and popular
C) If comparable sales data are scarce or the machine is highly customized
D) When the machine’s serial number has been confirmed by the manufacturer
)

26. “Salvage Value” is best defined as:

A) The depreciation amount recorded for tax purposes
B) The expected future cost of repairs if kept in service indefinitely
C) The likely resale amount if the equipment is sold for continued use, but at the end
of its economic life
D) A random figure that investors add to the net operating income

27. A forklift’s age/life ratio suggests 50% physical deterioration. However, new safety
regulations drastically reduce its utility to only one more year. What additional
factor most contributes to the forklift’s overall depreciation?
A) Unusual brand name
B) External/Economic Obsolescence
 C) Perfect maintenance records
D) Microidentification mismatch

28. Under the Income Method, if the net returns are negative in the final years but
salvage value is still high, how would that typically affect the equipment’s economic
life?
A) It would shorten the economic life, as operating at a loss is unsustainable
B) It would extend the economic life indefinitely
C) Negative net returns have no effect if salvage value exists
D) It converts economic life into physical life

29. , what is the “best evidence” for determining normal useful life of a machinery asset?
A) The manufacturer’s recommended maintenance schedule
B) The largest possible salvage value from third-party dealers
C) Actuarial or statistical studies of similar properties under actual operating conditions
D) The sum of physical plus economic life

30. A packaging machine is 4 years old, but due to heavy usage, it has the wear and tear of a
6-year-old machine. In an age/life calculation, which figure would be the “effective
age”?
A) 4 years
B) 6 years
C) 5 years (midpoint of usage)
D) 0, because it still operates

31. Which principle underlines the Income Method for machinery valuation, as
emphasized in the document?
A) Valuation is strictly based on manufacturing brand loyalty
B) Future returns (cash flows and salvage) must be discounted to present value to
reflect time value of money and risk
 C) The cost approach is always more accurate than discounting cash flows
D) Physical obsolescence takes precedence over net revenue potential
2. According to the document, which formula best represents the “value of a company”
in simple financial terms?
A) Market value of short-term assets + cost of debt.
B) Sum of intangible assets + intangible liabilities.
C) Market value of total assets minus market value of debt.
D) Face value of all outstanding bonds plus retained earnings.

3. If a factory is purchased using both mortgage debt and equity, the “gearing”
effect generally refers to:
A) How the mortgage interest rate is reduced by inflation over time.
B) The proportion of borrowed capital versus shareholders’ equity and its impact
on returns.
C) The legal requirement to repay the loan within one year.
D) The direct correlation between intangible assets and market value of equity.

4. Which of the following best describes the role of “debt” in a firm’s capital structure,
as discussed in the document?
A) Debt is an optional source of capital that never needs repayment.
B) Debt is financed by equity holders on behalf of the firm.
C) Debt holders lend money that must be repaid with interest.
D) Debt is recorded as intangible assets on the balance sheet.

5. Fill in the Blank.

“ are considered the long-term assets of a firm, including plant,
equipment, land, and buildings, according to the document’s asset categorization.”
A) Intangible Assets
B) Current Liabilities
C) Fixed Assets
D) Financial Investments

6. Which statement about “current assets” in a firm’s balance sheet is accurate according
to the material?
A) They consist only of long-term investments.
B) They usually include inventory, receivables, and cash.
C) They are intangible items like patents and goodwill.
D) They must always be revalued daily at market prices.
)

7. “Accounts Receivable” is recorded in the balance sheet at the amount owed

by customers, minus:
A) Any depreciation charges.
B) The firm’s intangible asset reserve.
C) A reserve for expected bad debts.
D) Equity holders’ guaranteed dividends.

8. Which of the following categories includes intangible assets such as patents

and trademarks?
A) Current Liabilities
B) Shareholder’s Equity
C) Financial Investments
D) Fixed Assets (intangible)
 9. Fill in the Blank.
In the document, “ ” is the cost of the different financing
components (debt and equity) used by the firm, weighted by their market value
proportions.
A) Asset-based approach
B) WACC (Weighted Average Cost of Capital)
C) Accounts Payable turnover
D) Inventory carrying cost

10. Which statement best describes the core principle of the Income (DCF) Method
for valuing a business?
A) Summing historical cost of all tangible assets and liabilities.
B) Projecting future cash flows to the firm and discounting them at an appropriate cost
of capital.
C) Considering only intangible benefits and ignoring actual receipts.
D) Counting the number of employees to estimate corporate value.

11. In a simple zero-growth model for business valuation, if a firm’s annual net cash flow is
$1,000,000 and the discount rate is 10%, the estimated value would be:
A) $10,000
B) $100,000
C) $10,000,000
D) $1,000,000

12. Fill in the Blank.

According to the document, the capitalization rate “c” can be expressed
mathematically as c = k – g, where “k” is the discount rate and “g” represents .
A) the firm’s largest expense
B) the intangible asset proportion
C) the tax rate
D) the long-term growth rate
13. When performing a DCF valuation, why is it crucial to match the correct cash flow
(to equity or to firm) with the appropriate discount rate?
A) Because mismatching them can lead to an overstated or understated equity value.
B) Because the valuation formula always uses nominal interest rates.
C) Because intangible assets lose value if discount rates are not aligned.
D) Because the WACC must be used only for personal loans, not corporate finance.

14. Which concept refers to all the cash flows after operating expenses, reinvestment,
and taxes, but before any payments to debt or equity holders?
A) Shareholder dividends
B) Free cash flow to equity (FCFE)
C) Free cash flow to the firm (FCFF)
D) Additional paid-in capital

15. The document mentions that if a firm’s return on capital equals its cost of capital
in perpetuity, then the firm’s terminal value is:
A) Zero, because no future economic profit is generated.
B) Maximized, because each dollar reinvested yields infinite returns.
C) Dependent on intangible goodwill calculations alone.
D) Derived primarily from external acquisitions.

16. Under the two-stage FCFE model, an appraiser would typically:

A) Assume zero growth in free cash flow after the first year.
B) Use a short initial period of high growth and then a stable growth rate thereafter.
C) Only apply it to firms that have no outstanding debt.
D) Consolidate intangible assets at book value.
 18. In the document’s example of valuing a firm’s equity versus valuing the firm as a
whole, which key principle is highlighted?
A) You can apply the same discount rate to both equity and firm cash flows.
B) The total firm value minus market value of debt equals equity value.
C) Equity value must always exceed the firm’s total debt.
D) Discounting cash flows to equity at WACC typically inflates the firm value.

19. Which statement is correct regarding “Other Long-Term Liabilities” mentioned in

the document?
A) They only include short-term customer advances.
B) They often encompass pension obligations, leased assets, and deferred tax liabilities.
C) They are intangible assets included under goodwill.
D) They are always fully amortized within one year.

19. Fill in the Blank.

The document states that if a firm’s annual net cash flow to equity (FCFE) is constant
and continues forever, the equity value can be estimated by dividing FCFE by “ .”
A) the weighted average cost of capital
B) the retention ratio
C) (cost of equity – growth rate)
D) the total face value of outstanding bonds

21. A company invests in another firm’s shares and classifies it as “trading

investments.” According to the document’s accounting principles, such holdings are
typically:
A) Recorded at historical cost, never adjusted.
 B) Valued on the balance sheet at market value, with any unrealized
gains/losses affecting earnings.
C) Excluded entirely from current assets to avoid confusion.
D) Added to intangible assets as “goodwill.”

22. Which factor would most likely cause discounted cash flow valuation to be
problematic, as indicated in the text?
A) Stable positive cash flows and easily determined risk proxies
B) A firm with zero debt and strictly intangible assets
C) Negative or highly uncertain future cash flows that lack reliable projections
D) The existence of current liabilities exceeding current assets by a small margin

23. Fill in the Blank.

“ ” is the concept of discounting potential dividends (or free cash flows to
equity) rather than actual dividends, viewing how much a firm could pay out if it
chooses to.
A) Zero growth approach
B) FCFE Valuation Model
C) Cost approach to intangible assets
D) Depreciated Replacement Cost

24. The “WACC” formula includes multiplying the cost of debt by (1 - tax rate). Why is
this tax adjustment included?
A) Because interest expenses on debt are generally tax-deductible, reducing the
effective cost of borrowing.
B) To ensure the firm pays more taxes for using equity financing.
C) To penalize companies with high intangible assets.
D) Because inventory turnover is closely linked to debt maturity.
25. Which scenario best fits the application of the two-stage FCFE valuation model?
A) A stable utility company with zero anticipated growth
B) A new tech startup that is expected to have rapid growth for a few years,
then moderate growth thereafter
C) A fully mature enterprise with negative free cash flows to equity
D) A local corner store with unpredictable monthly revenue

26. “Deferred taxes” on a balance sheet generally:

A) Represent tangible property liens recorded at fair market value.
B) Indicate amounts of taxes owed but not yet paid, which might be recognized in
later periods.
C) Are only applicable to intangible goodwill amortization.
D) Replace current liabilities entirely if the firm invests in intangible patents.

27. If a firm’s return on capital is consistently higher than its cost of capital, what is the
likely effect on its valuation under a DCF framework?
A) The value remains fixed because excess returns are zero.
B) The firm’s value is typically enhanced because it generates economic profit above
its financing cost.
C) The cost of debt will automatically drop to zero.
D) The intangible assets get fully depreciated.

28. When computing Free Cash Flow to Equity (FCFE), which factor is not deducted
from net income?
A) Capital expenditures
B) Increases in working capital
 C) Changes in the level of debt (issuance or repayment)
D) Scheduled dividend payments to preferred shareholders

29. Fill in the Blank.

Under the Income Method, if the return on capital equals the cost of capital
in perpetuity, the firm’s future “excess returns” are effectively .
A) Positive and growing
B) Negative and unbounded
C) Zero
D) Guaranteed by shareholders’ equity

30. A business has net income of $2 million, invests $500,000 in net capital expenditures,
increases working capital by $200,000, and issues $300,000 of new debt. Assuming
no other items, its Free Cash Flow to Equity (FCFE) would be:
A) $1,300,000
B) $2,000,000
C) $1,800,000
D) $600,000

31. In a “constant growth” FCFE model, which parameter is most critical to projecting long-
term value?
A) The firm’s brand name
B) The incremental tax rate on intangible assets
C) The stable growth rate (gn) used to forecast FCFE
D) The proportion of short-term debt in the capital structure
32. When analyzing the value of the firm (FCFF approach) versus value of equity
(FCFE approach), the difference primarily arises from:
A) Dividends paid to shareholders
B) Financing costs and the interest tax shield, which are excluded from FCFF
but included in FCFE calculations
C) The intangible goodwill being accounted for differently
D) Depreciation schedules on fixed assets
3. According to the document, which statement best defines “Price Determination”
(định giá) by the State?
A) A process of finding the market value of a single property at a specific time.
B) A procedure where the competent authority sets or regulates prices for goods
and services.
C) A free appraisal service offered by real estate agencies.
D) A negotiation process between two private individuals with no official involvement.

4. Which of the following describes “Price Appraisal” (thẩm định giá)?

A) Determining the final selling price of a product based on profit margin alone.
B) Setting a legally binding price floor for essential commodities.
C) Determining the monetary value of assets according to market price at a certain
time, for a certain purpose, following appraisal standards.
D) Issuing daily price quotes for international currency exchange.

5. Fill in the Blank.

“An is simply an estimate or opinion of a property’s current market worth,
usually offered as a free service by some agencies, whereas a Valuation is an
official, written report and can be relied upon legally.”
A) Assessment
B) Appraisal
 C) Audit
D) Lease

6. Which scenario would most likely require an official “Valuation” rather than just
an “Appraisal,” according to the document?
A) An informal request from a neighbor for the approximate value of their house.
B) A property owner curious about market conditions but not engaged in any transaction.
C) A legal dispute over property settlement requiring a definitive written value.
D) A bank offering free real estate advice for marketing purposes.

7. The State’s approach to managing prices involves which key principle, as stated in
the document?
A) Replacing free competition with fixed government-mandated prices for all goods.
B) Respecting the right of self-determination of prices under market mechanisms
while intervening to stabilize prices when necessary.
C) Keeping all price data confidential from the general public to prevent inflation.
D) Setting prices only for intangible assets, leaving tangible goods unregulated.

8. Fill in the Blank.

Among the content of State management in the price field, one key task is
“collecting, synthesizing, analyzing, and forecasting in domestic and
international markets.”
A) Marketing slogans
B) Decrees and laws
C) The market prices
D) Archival documents
9. Which of the following is not listed as a form of “Price Determination” (định giá) by
the State in the document?
A) Setting a particular, specific price level.
B) Imposing a price bracket or frame.
C) Declaring a universal zero price for essential goods.
D) Stipulating a maximum or minimum price.

10. Under the law on prices, one of the grounds for determining prices includes:
A) Conducting a random lottery among producers.
B) Solely the cost of local labor wages without other factors.
C) Analysis of supply-demand relationships, currency purchasing power, and
consumers’ solvency.
D) Ignoring any domestic market data in favor of international benchmarks only.

11. Which statement accurately reflects “Price Appraisal” under the law?
A) It can be performed by any individual with basic accounting knowledge.
B) It must follow a six-step process, including surveying, analyzing information,
and issuing a formal report.
C) It only applies to real estate, not to any other type of asset.
D) The result cannot be used for any legal or financial transactions.
12. Fill in the Blank.
When conducting a price appraisal, an organization must ensure “independence on
professional, honesty, objective in the operation and in the result of price
appraisal.”
A) Confirmation of zero mistakes
B) Political neutrality
C) Integrity of data collection
D) Confidentiality of all drafts

13. According to the document, individuals are not entitled to do what in relation to
price appraisal?
A) Join training courses on appraisal.
B) Operate a price appraisal business independently without meeting legal conditions.
C) Provide input data for a licensed appraisal firm.
D) Apply for a job at a government pricing agency.

14. One principle of price appraisal is the “assurance of independence” in

professional judgment. Which example aligns with that principle?
A) An appraiser refusing to appraise any property where the owner is a friend.
B) An appraiser taking direct instructions on the final value from the hiring client.
C) A government official setting prices for all local farms, ignoring their cost data.
D) A real estate agent giving free quotes to prospective buyers.

15. In the official “Process of asset price appraisal,” which step typically comes first?
A) Surveying reality and collecting information
B) Defining the asset(s) for price appraisal, including identifying whether market or
non- market basis
 C) Making the final report and certificate
D) Analyzing the gathered data

16. A price appraiser must meet certain criteria. Which is not one of them according to
the document?
A) Being of legal civil act capacity.
B) Having a specialized university degree related to price appraisal.
C) Possessing an official certificate of professional training in price appraisal.
D) Owning a property worth over $1 million.

17. Under the law, why is “keeping information in secret” a key principle for
price appraisers?
A) Because the final valuation result must not be disclosed to the hiring client.
B) To protect sensitive data obtained during appraisal and maintain professional integrity.
C) It allows the appraiser to manipulate market outcomes.
D) It prevents the government from verifying the final report.

19. A licensed appraiser is engaged to estimate the price of specialized machinery.

Which step of the appraisal process does the document indicate must occur before
collecting market data?
A) Writing the final price-appraising certificate
B) Defining the asset and deciding the relevant price basis (market or non-market)
C) Analyzing statistical cost trends of the entire industry
D) Negotiating the appraisal fee with the client
 20. In the event of a public-sector dispute over government-regulated prices, which
principle of price management is most relevant?
A) The State must keep all price negotiations confidential from citizens
B) The State manages prices under the market mechanism but intervenes to
protect legitimate interests and stabilize the market
C) Private enterprises can override state-defined price floors at any time
D) There is no official recourse if government-set prices are deemed unfair

20. Fill in the Blank.

Under the law, one of the grounds for price determination is the “relation
between supply and demand of goods or services and the _ of consumers.”
A) social reputation
B) solvency
C) emotional preference
D) brand awareness

22. Why might the State impose a “price frame” (giá khung) for certain commodities,
as mentioned in the document?
A) To ensure that every item is sold at the same price nationwide
B) To allow producers and retailers zero flexibility in pricing
C) To set a permissible range (minimum and maximum) of prices, balancing free
market with social protection
D) To restrict the purchase of commodities to government agencies only
 23. Which statement best reflects the difference between “valuation (định giá)” by the
State and “appraisal (thẩm định giá)” by specialized agencies?
A) Valuation focuses on specific property disputes, while appraisal deals with
mass- market consumer goods only
B) Valuation sets or regulates prices from an administrative perspective, while
appraisal determines a market-consistent value of specific assets for legal or financial
purposes
C) Appraisal is always cheaper than valuation
D) Appraisal is performed solely by tax authorities, whereas valuation is done by
private firms

24. Fill in the Blank.

“Management of training, fostering professional skills specialized in price appraisal”
is one of the tasks under the State’s in the price field.
A) business registration obligations
B) group insurance policies
C) content of state management
D) taxation code

25. If a price appraiser lacks a valid certificate of professional training but has extensive
real- world experience, what does the document suggest?
A) They may operate independently but must charge lower fees
B) They cannot lawfully perform price-appraising operations on their own
C) They only need to file a personal affidavit declaring competence
D) They can be hired by the State to do mandatory pricing tasks
26. Which scenario would likely fall outside the standard 6-step process for asset
price appraisal, as discussed in the document?
A) Defining the asset and the appraisal basis
B) Collecting market data for comparison
C) Arbitrarily setting a price without issuing a formal report
D) Analyzing and reconciling data before finalizing the certificate

27. The law mentions “non-market price making” as a basis for price appraisal.
Which example fits this context?
A) Real estate valued strictly by recent comparable sales
B) Agricultural goods priced based on daily supply-demand in open markets
C) A forced-sale scenario for bank-collateral assets where typical market conditions
don’t apply
D) Imported electronics priced according to local brand preference

28. If the Ministry of Finance finds evidence of widespread manipulation in setting official
maximum prices, which task does it perform to address this, according to the
document?
A) Immediately abolish all pricing laws
B) Conduct an inspection, handle violations, and adjust regulations under
state management of prices
C) Force all businesses to use a single fixed price with no profit margin
D) Issue random penalties with no formal process
 29. Fill in the Blank.
A key principle in price-appraising operations is “assurance of on
professional, honesty, objective in price-appraising operation and result.”
A) tolerance
B) independence
C) compliance
D) sustainability

30. A new price appraiser candidate has a valid university degree, 24 months of
relevant work experience, and the official training certificate. According to the
document’s criteria, what are they still lacking to become a full-fledged price
appraiser?
A) Another 12 months of experience (total 36 months)
B) Private business license
C) Proof of intangible asset valuation skills only
D) Formal invitation by the local government

31. Which of the following best explains why the law includes guidelines for
“maximum price level” and “minimum price level”?
A) To eliminate any possibility of free-market competition
B) To grant unlimited authority for local businesses to set prices arbitrarily
C) To prevent excessively high or low prices that might harm consumers, producers,
or the State’s interests
D) To ensure that only luxury goods are sold at profitable rates
32. Under the State’s principle of price management, which statement is false regarding
support for disadvantaged areas?
A) The State has policies to aid areas with difficult socio-economic conditions
B) Local producers in these areas receive no preferential pricing support whatsoever
C) The State may implement special measures to stabilize prices or provide subsidies
D) This support aims to align with broader socio-economic development goals

33. A price appraiser is approached by a client demanding a specific final value. If the
appraiser agrees without independent investigation, which key principle is
violated?
A) The principle of price determination by the Ministry of Finance
B) The principle of cost-based price setting
C) The principle of independence, honesty, and objectivity in appraisal
D) The principle of non-disclosure to any party