Under a free paraphrase of the USPAP DEFINITIONS, which statement best describes credible?
Correct Answer
A) Worthy of belief; supported by analysis of relevant information; credible assignment results are those that are worthy of belief
Free paraphrase: credible means worthy of belief; supported by analysis of relevant information; credible assignment results are those that are worthy of belief. Assignment conditions, Appraiser, or Client do not define credible.
Why This Is the Correct Answer
Option A is correct because USPAP defines credible as worthy of belief, and credible assignment results require support by relevant evidence and logic. Option A states both the core meaning and the idea of support through analysis of relevant information.
Why the Other Options Are Wrong
Option B: Assumptions, hypothetical conditions, laws and regulations, jurisdictional exceptions and other conditions affecting scope
Option B, listing assumptions, hypothetical conditions, laws and regulations, jurisdictional exceptions and other conditions affecting scope, describes assignment conditions, not credible.
Option C: One who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective
Option C, one who is expected to perform valuation services competently and in an independent, impartial and objective manner, describes an appraiser, not credible.
Option D: The party or parties who engage an appraiser by employment or contract in a specific assignment for valuation services
Option D, the party or parties who engage an appraiser by employment or contract in a specific assignment, describes the client, not credible.
Credible means believable
Credible shares a root with credence and credit: something you can believe because evidence and logic support it.
How to use: Use the believable link to pick the definition that says worthy of belief.
Exam Tip
Definition-matching questions often borrow other terms' definitions as distractors; match the key words, here worthy of belief.
Common Mistakes to Avoid
- -Confusing credible with the definition of assignment conditions
- -Thinking credibility depends only on the appraiser's credentials
- -Assuming a conclusion is credible without supporting evidence
Concept Deep Dive
Analysis
This question tests the USPAP definition of credible. Credible means worthy of belief, and credible assignment results require support from relevant evidence and logic. The other options are definitions of different USPAP terms.
Background Knowledge
Credibility is the central test in USPAP: assignment results must be worthy of belief. Credibility is measured relative to the intended use and requires support by relevant evidence and logic. The scope of work must be sufficient to produce credible results.
Real-World Application
A reviewer questions an appraisal whose adjustments have no market support. The appraiser revisits paired sales data so that the conclusions are backed by evidence and logic and are worthy of belief.
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