which of these situations would increase gross potential income? - ANSWER
Renting storage space previously not considered rentable
A common goal for a real estate manager is to maximize which of the
following? - ANSWER Net operating income
NOI is determined by - ANSWER Effective Gross Income - Operating
Expense
Debt service is - ANSWER Payment required to repay the principal & int on a
mortgage loan
Subtracting operating expense from effective gross income yields: - ANSWER
Net operating income
The market value of income producing real estate may be estimated by: -
ANSWER Dividing NOI by the capitalization rate
Taxes on profits from real property are usually levied against: - ANSWER The
individual investors personal income
Which of the following expenditures probably would not be paid from a reserve
fund? - ANSWER Monthly electricity expenses
A chart of accounts is: - ANSWER A listing of specific income and expense
categories
Is this cash-basis accounting? 2 months rent recorded the first month and then
the following - ANSWER False
What is the best interval for paydays for management staff? - ANSWER Twice
a month
, Why do some res prop. Managers separate int. painting and decorating from
maintenance/ repair? - ANSWER Int. paint/décor is a freq recurring exp &
soley 4 appeal
Umbrella liability insurance protects the insured against: - ANSWER Liability
costs that are in excess of the basic liability policy
The principal record of a property's income is the: - ANSWER Rent roll
A budget is used to: - ANSWER Priority of spending based on amount of
income, expenses and cash flow
Prep annual bdgt & allocating funds monthly basis, which month lists expenses
incurred march but paid in May - ANSWER may
The level of detail & precession in a long-range bdgt is the same as in an annual
bdgt - ANSWER False
People who perform work at a property may be the employee of ? - ANSWER
The property owner, a contractor, and the real estate management firm
Which of the following determines the size of the staff of a real estate
management firm - ANSWER Number of properties in the firms portfolio, # of
clients the firm has, types of properties the firm manages
Which of the following is the best reason for hiring a contractor? - ANSWER
The work requires specialized skills, people who do the type of work must be
licensed, special tools or equipment is needed to do this work
Promotion from within a firm is economically unsound because they are
training two people - ANSWER False
Job descript lists the duties & resp. of a position, skills & experiences that
qualify an individual - ANSWER True
Fiduciary bonds should be obtained on all employees who handle money -
ANSWER True
Renting storage space previously not considered rentable
A common goal for a real estate manager is to maximize which of the
following? - ANSWER Net operating income
NOI is determined by - ANSWER Effective Gross Income - Operating
Expense
Debt service is - ANSWER Payment required to repay the principal & int on a
mortgage loan
Subtracting operating expense from effective gross income yields: - ANSWER
Net operating income
The market value of income producing real estate may be estimated by: -
ANSWER Dividing NOI by the capitalization rate
Taxes on profits from real property are usually levied against: - ANSWER The
individual investors personal income
Which of the following expenditures probably would not be paid from a reserve
fund? - ANSWER Monthly electricity expenses
A chart of accounts is: - ANSWER A listing of specific income and expense
categories
Is this cash-basis accounting? 2 months rent recorded the first month and then
the following - ANSWER False
What is the best interval for paydays for management staff? - ANSWER Twice
a month
, Why do some res prop. Managers separate int. painting and decorating from
maintenance/ repair? - ANSWER Int. paint/décor is a freq recurring exp &
soley 4 appeal
Umbrella liability insurance protects the insured against: - ANSWER Liability
costs that are in excess of the basic liability policy
The principal record of a property's income is the: - ANSWER Rent roll
A budget is used to: - ANSWER Priority of spending based on amount of
income, expenses and cash flow
Prep annual bdgt & allocating funds monthly basis, which month lists expenses
incurred march but paid in May - ANSWER may
The level of detail & precession in a long-range bdgt is the same as in an annual
bdgt - ANSWER False
People who perform work at a property may be the employee of ? - ANSWER
The property owner, a contractor, and the real estate management firm
Which of the following determines the size of the staff of a real estate
management firm - ANSWER Number of properties in the firms portfolio, # of
clients the firm has, types of properties the firm manages
Which of the following is the best reason for hiring a contractor? - ANSWER
The work requires specialized skills, people who do the type of work must be
licensed, special tools or equipment is needed to do this work
Promotion from within a firm is economically unsound because they are
training two people - ANSWER False
Job descript lists the duties & resp. of a position, skills & experiences that
qualify an individual - ANSWER True
Fiduciary bonds should be obtained on all employees who handle money -
ANSWER True
