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 type of value is most appropriate for a divorce settlement appraisal?
Answer: Fair market value
Divorce settlements typically require fair market value because it represents what the asset would realistically fetch between informed, willing parties in the open market.
A 'recourse appraisal' in the jewelry industry typically refers to:
Answer: An appraisal that provides a value above which the insurer can seek recovery
A recourse appraisal sets a ceiling value for insurance purposes, above which the insurer may seek recovery from the jewelry dealer or manufacturer.
The effective date of an appraisal report is best defined as:
Answer: The date to which the value opinion applies
The effective date is the specific date to which the appraiser's value opinion applies, which may or may not coincide with the report date.
When writing a jewelry appraisal report, the description of a diamond should include which of the following groups of characteristics?
Answer: Color, clarity, carat weight, and cut grade
The four Cs — color, clarity, carat weight, and cut — are the standard grading characteristics that must be documented for diamonds in an appraisal report.
Under USPAP, which of the following is a required element of a complete appraisal report for personal property?
Answer: A statement of the purpose and intended use of the appraisal
USPAP requires that every appraisal report clearly state the purpose of the appraisal and its intended use, as this defines the scope and type of value to be reported.
Which market level should a CGA reference when determining replacement value for insurance on a retail client's diamond ring?
Answer: Retail market
Insurance replacement value reflects what the insured would pay at retail to replace the item, so the retail market is the appropriate reference level.
A CGA appraiser discovers that a client's ruby has been heat-treated. The proper course of action is to:
Answer: Disclose the treatment in the report as it significantly affects value
Disclosure of treatments is mandatory in appraisal reports because heat treatment affects gemstone value and is material information the client and third parties need.