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CPPA, Module 4 Exam 2025| Brand New
Actual Exam With Correct Answers.
How is assessed value determined? - CORRECT-ANSWER-Assessors base value for
tax purposes on fair market value multiplied by a factor.
For an example: Assessed value multiplied by appropriate local tax rate it
produces the amount of tax payable
What data does historical cost include? - CORRECT-ANSWER-The amount paid to
acquire an asset and make it ready for use. When information is not available, it
may be necessary to estimate.
What is reverse indexing when determining historical cost? - CORRECT-ANSWER-
It is an approach to estimating historic value by comparing current value of similar
properties with comparable age.
What index must be used to determine adjustments for inflation from the date of
purchase? - CORRECT-ANSWER-Inflationary index such as Consumer Price Index
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What is insured value? - CORRECT-ANSWER-It is the value of the property, or a
portion, IAW the terms of an insurance policy or agreement which provide
indemnity for the replacement cost or actual cost value
What is market value? - CORRECT-ANSWER-It is the value that a willing buyer
might pay a willing seller
What is the best source for determining the market value of similar items? -
CORRECT-ANSWER-Previous sales records
What is the replacement value? - CORRECT-ANSWER-It is the cost of replacing an
asset with an equivalent asset which can provide similar service at current market
price
What is salvage/residual value and what is it based on? - CORRECT-ANSWER-It is
the estimated value of an asset at the end of its useful life and it is based on its
value in excess of its basic material content
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What is scrap value? - CORRECT-ANSWER-The amount realized when an asset is
sold for its basic material content at the end of of its useful life.
What are two types of appraisals? - CORRECT-ANSWER-- Mass
- Machinery and Equipment
What is Mass appraisal? - CORRECT-ANSWER-It is the process of valuing a
universe of properties as a given date using standard methods, employing
common data, and allowing for statistical testing
When developing a mass appraisal, what must the appraiser observe? - CORRECT-
ANSWER-1. The cost of new improvements
2. Accrued depreciation
3. The value of land by sales of comparable property
4. The value of property by sales of comparable property
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5. The value of capitalization of income i.e. rentals, expenses, interest rates,
capitalization rates, and vacancy rates
What are three approaches to the appraisal of machinery and equipment? -
CORRECT-ANSWER-1. Sales Approach
2. Cost Approach
3. Income Approach
When is the Sales Approach most effective? - CORRECT-ANSWER-When there is
an active market providing sufficient numbers of comparable properties for sale
What seven premises of value should be considered when determining Sales
Approach method? - CORRECT-ANSWER-1. Fair Market Value
2. Fair Market Value in Continued Use
3. Fair Market Value - Installed
CPPA, Module 4 Exam 2025| Brand New
Actual Exam With Correct Answers.
How is assessed value determined? - CORRECT-ANSWER-Assessors base value for
tax purposes on fair market value multiplied by a factor.
For an example: Assessed value multiplied by appropriate local tax rate it
produces the amount of tax payable
What data does historical cost include? - CORRECT-ANSWER-The amount paid to
acquire an asset and make it ready for use. When information is not available, it
may be necessary to estimate.
What is reverse indexing when determining historical cost? - CORRECT-ANSWER-
It is an approach to estimating historic value by comparing current value of similar
properties with comparable age.
What index must be used to determine adjustments for inflation from the date of
purchase? - CORRECT-ANSWER-Inflationary index such as Consumer Price Index
,2|Page
What is insured value? - CORRECT-ANSWER-It is the value of the property, or a
portion, IAW the terms of an insurance policy or agreement which provide
indemnity for the replacement cost or actual cost value
What is market value? - CORRECT-ANSWER-It is the value that a willing buyer
might pay a willing seller
What is the best source for determining the market value of similar items? -
CORRECT-ANSWER-Previous sales records
What is the replacement value? - CORRECT-ANSWER-It is the cost of replacing an
asset with an equivalent asset which can provide similar service at current market
price
What is salvage/residual value and what is it based on? - CORRECT-ANSWER-It is
the estimated value of an asset at the end of its useful life and it is based on its
value in excess of its basic material content
,3|Page
What is scrap value? - CORRECT-ANSWER-The amount realized when an asset is
sold for its basic material content at the end of of its useful life.
What are two types of appraisals? - CORRECT-ANSWER-- Mass
- Machinery and Equipment
What is Mass appraisal? - CORRECT-ANSWER-It is the process of valuing a
universe of properties as a given date using standard methods, employing
common data, and allowing for statistical testing
When developing a mass appraisal, what must the appraiser observe? - CORRECT-
ANSWER-1. The cost of new improvements
2. Accrued depreciation
3. The value of land by sales of comparable property
4. The value of property by sales of comparable property
, 4|Page
5. The value of capitalization of income i.e. rentals, expenses, interest rates,
capitalization rates, and vacancy rates
What are three approaches to the appraisal of machinery and equipment? -
CORRECT-ANSWER-1. Sales Approach
2. Cost Approach
3. Income Approach
When is the Sales Approach most effective? - CORRECT-ANSWER-When there is
an active market providing sufficient numbers of comparable properties for sale
What seven premises of value should be considered when determining Sales
Approach method? - CORRECT-ANSWER-1. Fair Market Value
2. Fair Market Value in Continued Use
3. Fair Market Value - Installed
