IAAO 102 QUIZ 1 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 long 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/rate=value - CORRECT ANSWER -the basic equation used in the income approach to
value is
gross lease - CORRECT ANSWER -requires that in addition to the rent, the landlord must pay
maintenance, utilities, insurance and taxes
deficit rent - CORRECT ANSWER -when market rent exceeds contract rent, the difference is
known as
market rent - CORRECT ANSWER -rental income that a property would most probably
command in the open market
effective gross income (EGI) - CORRECT ANSWER -the anticipated income from all operations
of the property adjusted for vacancy and collection losses, and misc. income is called:
effective rent - CORRECT ANSWER -lease base rent less rent concessions is called:
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 long 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/rate=value - CORRECT ANSWER -the basic equation used in the income approach to
value is
gross lease - CORRECT ANSWER -requires that in addition to the rent, the landlord must pay
maintenance, utilities, insurance and taxes
deficit rent - CORRECT ANSWER -when market rent exceeds contract rent, the difference is
known as
market rent - CORRECT ANSWER -rental income that a property would most probably
command in the open market
effective gross income (EGI) - CORRECT ANSWER -the anticipated income from all operations
of the property adjusted for vacancy and collection losses, and misc. income is called:
effective rent - CORRECT ANSWER -lease base rent less rent concessions is called:
