IAAO 102 Quiz 2 COMPLETE Questions And
Correct Answers (Verified Answers) 2026
A gross income multiplier (GIM), as used in a commercial appraisal, is obtained by dividing the
____________________________.
A. sale price by annual gross income
B. sale price by monthly gross income
C. overall capitalization rate by the sale price
D. annual gross income by the sale price
A gross income multiplier (GIM), as used in a commercial appraisal, is obtained by dividing the
____________________________.
A. sale price by annual gross income
B. sale price by monthly gross income
C. overall capitalization rate by the sale price
D. annual gross income by the sale price
will be on exam
The borrowing of funds in hopes of earning a greater return than the cost of the borrowed funds
is known as __________________.
A appreciation
B liquidity
C leverage
D none of the above
The borrowing of funds in hopes of earning a greater return than the cost of the borrowed funds
is known as __________________.
A appreciation
B liquidity
C leverage
D none of the above
will be on exam
, Direct capitalization is a valid method when the overall rate is developed from sales in which
_____________________________________________________.
A. the land-to-building ratios are similar to those of the subject property
B. the remaining economic lives are similar to those of the subject property
C. the income and expense ratios are similar to those of the subject property
D. all of the above
Direct capitalization is a valid method when the overall rate is developed from sales in which
_____________________________________________________.
A. the land-to-building ratios are similar to those of the subject property
B. the remaining economic lives are similar to those of the subject property
C. the income and expense ratios are similar to those of the subject property
D. all of the above
will be on exam
The subject property's net income is $15,000 per year. Comparable investments sold and are
reported below.
All of the comparables sold recently and Comparables 2 and 4 were most similar to the subject
property.
Using direct capitalization with an overall rate, what is the best estimate of the value of the
subject property (rounded to the nearest $1,000)?
A. $125,000
B. $137,000
C. $143,000
D. $158,000
The subject property's net income (NOI) is $15,000 per year. Comparable investments sold and
are reported below.
All of the comparables sold recently and Comparables 2 and 4 were most similar to the subject
property. Using direct capitalization with an overall rate, what is the best estimate of the value
of the subject property (rounded to the nearest $1,000)?
A. $125,000
B. $137,000
C. $143,000
D. $158,000
Correct Answers (Verified Answers) 2026
A gross income multiplier (GIM), as used in a commercial appraisal, is obtained by dividing the
____________________________.
A. sale price by annual gross income
B. sale price by monthly gross income
C. overall capitalization rate by the sale price
D. annual gross income by the sale price
A gross income multiplier (GIM), as used in a commercial appraisal, is obtained by dividing the
____________________________.
A. sale price by annual gross income
B. sale price by monthly gross income
C. overall capitalization rate by the sale price
D. annual gross income by the sale price
will be on exam
The borrowing of funds in hopes of earning a greater return than the cost of the borrowed funds
is known as __________________.
A appreciation
B liquidity
C leverage
D none of the above
The borrowing of funds in hopes of earning a greater return than the cost of the borrowed funds
is known as __________________.
A appreciation
B liquidity
C leverage
D none of the above
will be on exam
, Direct capitalization is a valid method when the overall rate is developed from sales in which
_____________________________________________________.
A. the land-to-building ratios are similar to those of the subject property
B. the remaining economic lives are similar to those of the subject property
C. the income and expense ratios are similar to those of the subject property
D. all of the above
Direct capitalization is a valid method when the overall rate is developed from sales in which
_____________________________________________________.
A. the land-to-building ratios are similar to those of the subject property
B. the remaining economic lives are similar to those of the subject property
C. the income and expense ratios are similar to those of the subject property
D. all of the above
will be on exam
The subject property's net income is $15,000 per year. Comparable investments sold and are
reported below.
All of the comparables sold recently and Comparables 2 and 4 were most similar to the subject
property.
Using direct capitalization with an overall rate, what is the best estimate of the value of the
subject property (rounded to the nearest $1,000)?
A. $125,000
B. $137,000
C. $143,000
D. $158,000
The subject property's net income (NOI) is $15,000 per year. Comparable investments sold and
are reported below.
All of the comparables sold recently and Comparables 2 and 4 were most similar to the subject
property. Using direct capitalization with an overall rate, what is the best estimate of the value
of the subject property (rounded to the nearest $1,000)?
A. $125,000
B. $137,000
C. $143,000
D. $158,000
