Appraisal Methodology & Report Writing Flashcards
7 cards from real CGA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Appraisal Methodology & Report Writing flashcards as text
Which appraisal approach is most commonly used for unique gemstone jewelry where no direct comparable sales exist?
Answer: Replacement value approach
Replacement value approach estimates the cost to replace an item with one of similar kind and quality, making it practical for unique jewelry pieces.
When appraising an estate piece for fair market value, the appraiser should consider:
Answer: What a willing buyer would pay a willing seller with neither under compulsion
Fair market value is defined by IRS standards as the price agreed upon between a willing buyer and willing seller, both having reasonable knowledge and neither being compelled to transact.
A CGA preparing a damage appraisal for a ring that was broken during repair should base value on:
Answer: The difference in value before and after the damage
Damage appraisals measure diminution in value — the difference between the item's value in its undamaged state versus its damaged state.
Which statement about retrospective appraisals is CORRECT?
Answer: They establish value as of a date in the past using market data from that time period
Retrospective appraisals establish value as of a past effective date using market conditions and data relevant to that historical period.
In an insurance appraisal report, the term 'scheduling' refers to:
Answer: Listing specific items on an insurance policy with individual coverage limits
Scheduling means individually listing and insuring specific items on a policy, providing coverage up to the stated appraised value for each scheduled piece.
The 'work file' requirement under USPAP requires an appraiser to retain:
Answer: All data, information, and documentation necessary to support the appraiser's opinions and conclusions
USPAP requires appraisers to maintain a work file containing all data and documentation that supports the conclusions in the appraisal report.
When an appraisal report contains a 'limiting condition' stating 'stones were not removed from mounting,' this means:
Answer: The appraiser's conclusions may be limited because full examination was not possible
Limiting conditions disclose circumstances that constrain the scope of work, and stones-in-mounting is a common limitation since mounted stones cannot be fully examined.