CCIM 101 Financial Analysis – Actual Exam Questions and Correct Solutions

CCIM 101 - FINANCIAL ANALYSIS UPDATED
ACTUAL EXAM WITH CORRECT SOLUTIONS.




What are the four basic components of NOI? - correct
answer-
1 - Potential rental income (PRI)
2 - Vacancy and credit losses
3 - Other income
4 - Operating expenses




[XXXX] is used to determine a property's PRI (Potential
Rental Income.) - correct answer- Lease analysis




PRI equals NOI in what property/tenant scenario? -
correct answer- If the property has one tenant with a
long-term absolute NNN lease.




[XXXX] is PRI minus vacancy and collection losses. -
correct answer- ERI (Effective Rental Income)

, Name some items which are EXCLUDED from
Operating Expenses. - correct answer- Interest and
principal on debt on the property
Depreciation (cost
recovery) Capital
Expenditures Income
Taxes
Reserves for Replacement
Tenant Improvements




True or False: Depreciation is included in Operating
Expenses.
- correct answer- False




True of False: Principal and interest on debt financing is
included in Operating Expenses - correct answer- False.
This is an expense of ownership, not an operating
expense.




True or False: Capital Expenditures are included in
Operating Expenses. - correct answer- False. They are
written off over a period of years.




True of False: Income Taxes are included in