IAAO 500 FINAL EXAM STUDY GUIDE || 2025/2026
VERIFIED QUESTIONS WITH DETAILED
ANSWERS || GUARANTEED SUCCESS
<UPDATED>
fixed assets
tangible, acquired for sale, items are of relatively permanent nature.
machinery and equipment
computers
aircrafts, motor vehicles, mobile homes, boats
leased equipment
construction in progress
tool, dies, jigs, molds
Leasehold Improvements
Alterations or improvements to leased property such as partitions and storefront by the lessee
one of the most difficult items to reconcile with regards to real or personal classification and to
whom the property should be assessed
,Intangible Personal Property
Something that represents value but has no physical attributes, such as a copyright, patent, or
franchise right. Also includes money on hand
annual assessment roll
prepared by the assessor as the basis of ad valorem taxation for the local government jurisdiction
the tax rate
based on the annual budget requirements and total assessed valuation
8 basic functions of the assessor
-discovery and identification of property
-inventory of property
-classification and determination of extent of taxability (Situs)
-estimation of market value of property (appraisal)
-calculation of assessed value of property
-preparation of assessment roll
-notification to owners of assessed value
-defense of value estimates on appeal
Situs
a more or less permanent or fixed location, affecting the extent of taxability of personal property
discovery
,the process where the assessor identifies all taxable property in the jurisdiction and ensures that it
is included on the assessment roll
Personalty
a good rule-of-thumb to classify all property and investments necessary for the operation of the
machinery and equipment for apraisals
listing or declaration form
the most important document an assessor can use in obtaining a complete report of the taxpayers
personal property when appraising tangible personal property
Net Book Value
The result of subtracting accumulated depreciation from historical or acquisition cost
cost less accounting depreciation
accounting depreciation
a systematic process of cost allocation
*cost recovery
Last-In, First-Out (LIFO)
the method of inventory cost accounting that results in the lowest ending inventory value in a
growing economy
assumes that the goods on hand are the earliest purchased ad the the more recently purchased
goods have been sold
, Depreciation
A decrease or loss in value.
accounting and appraisal depreciation produce an estimated loss in value, but from different
starting point: accounting from the historical cost and appraisal from the replacement cost new as
of the appraisal date
Appraisal depreciation
loss of market value from ALL CAUSES
Depreciation Schedule
Used by accountants to calculate the measures expense to be taken within a certain revenue
period.
The Matching Principle
The most used of the accounting principles that requires accountants to match expenses against
revenues or to subtract the expenses from the revenues in order to report a company's
profitability during a specific time interval
Basic accounting principles and concepts
The Entity Concept
The Reliability Principle
The Cost Principle
The Going -Concern Concept
The Stable -Monetary-Unit Concept
The Matching Principle
VERIFIED QUESTIONS WITH DETAILED
ANSWERS || GUARANTEED SUCCESS
<UPDATED>
fixed assets
tangible, acquired for sale, items are of relatively permanent nature.
machinery and equipment
computers
aircrafts, motor vehicles, mobile homes, boats
leased equipment
construction in progress
tool, dies, jigs, molds
Leasehold Improvements
Alterations or improvements to leased property such as partitions and storefront by the lessee
one of the most difficult items to reconcile with regards to real or personal classification and to
whom the property should be assessed
,Intangible Personal Property
Something that represents value but has no physical attributes, such as a copyright, patent, or
franchise right. Also includes money on hand
annual assessment roll
prepared by the assessor as the basis of ad valorem taxation for the local government jurisdiction
the tax rate
based on the annual budget requirements and total assessed valuation
8 basic functions of the assessor
-discovery and identification of property
-inventory of property
-classification and determination of extent of taxability (Situs)
-estimation of market value of property (appraisal)
-calculation of assessed value of property
-preparation of assessment roll
-notification to owners of assessed value
-defense of value estimates on appeal
Situs
a more or less permanent or fixed location, affecting the extent of taxability of personal property
discovery
,the process where the assessor identifies all taxable property in the jurisdiction and ensures that it
is included on the assessment roll
Personalty
a good rule-of-thumb to classify all property and investments necessary for the operation of the
machinery and equipment for apraisals
listing or declaration form
the most important document an assessor can use in obtaining a complete report of the taxpayers
personal property when appraising tangible personal property
Net Book Value
The result of subtracting accumulated depreciation from historical or acquisition cost
cost less accounting depreciation
accounting depreciation
a systematic process of cost allocation
*cost recovery
Last-In, First-Out (LIFO)
the method of inventory cost accounting that results in the lowest ending inventory value in a
growing economy
assumes that the goods on hand are the earliest purchased ad the the more recently purchased
goods have been sold
, Depreciation
A decrease or loss in value.
accounting and appraisal depreciation produce an estimated loss in value, but from different
starting point: accounting from the historical cost and appraisal from the replacement cost new as
of the appraisal date
Appraisal depreciation
loss of market value from ALL CAUSES
Depreciation Schedule
Used by accountants to calculate the measures expense to be taken within a certain revenue
period.
The Matching Principle
The most used of the accounting principles that requires accountants to match expenses against
revenues or to subtract the expenses from the revenues in order to report a company's
profitability during a specific time interval
Basic accounting principles and concepts
The Entity Concept
The Reliability Principle
The Cost Principle
The Going -Concern Concept
The Stable -Monetary-Unit Concept
The Matching Principle
