Quiz #1 IAAO Course 102 EXAM Questions And
Correct Answers (Verified Answers) 2026
Capitalization is the process used to: - CORRECT ANSWER -convert income into an estimate of
value
fixed-rate mortgage - CORRECT ANSWER -A loan secured by real property featuring an
interest rate that is constant for the term of the loan is referred to as a (an):
anticipation - CORRECT ANSWER -The underlying principle providing the basis of the income
capitalization approach is:
income divided by rate equals value - CORRECT ANSWER -The basic equation used in the
income approach to value is:
deficit rent - CORRECT ANSWER -When market rent exceeds contract rent the difference is
known as:
market rent - CORRECT ANSWER -The rental income that a property would most probably
command in the open market is called
effective gross income - CORRECT ANSWER -The anticipated income from all operations of
the property adjusted for vacancy and collection losses, and miscellaneous income is called:
0.47 - CORRECT ANSWER -If an income property has an annual effective gross income of
$64,000 with total expenses of $30,000 and variable expenses of $17,000, what is the operating
expense ratio?
44 percent - CORRECT ANSWER -operating expenses are $205,000, what is the operating
expense ratio (rounded)? potential gross income is $500,000. The vacancy and collection loss
Correct Answers (Verified Answers) 2026
Capitalization is the process used to: - CORRECT ANSWER -convert income into an estimate of
value
fixed-rate mortgage - CORRECT ANSWER -A loan secured by real property featuring an
interest rate that is constant for the term of the loan is referred to as a (an):
anticipation - CORRECT ANSWER -The underlying principle providing the basis of the income
capitalization approach is:
income divided by rate equals value - CORRECT ANSWER -The basic equation used in the
income approach to value is:
deficit rent - CORRECT ANSWER -When market rent exceeds contract rent the difference is
known as:
market rent - CORRECT ANSWER -The rental income that a property would most probably
command in the open market is called
effective gross income - CORRECT ANSWER -The anticipated income from all operations of
the property adjusted for vacancy and collection losses, and miscellaneous income is called:
0.47 - CORRECT ANSWER -If an income property has an annual effective gross income of
$64,000 with total expenses of $30,000 and variable expenses of $17,000, what is the operating
expense ratio?
44 percent - CORRECT ANSWER -operating expenses are $205,000, what is the operating
expense ratio (rounded)? potential gross income is $500,000. The vacancy and collection loss
