Comprehensive Argus Certification Study Manual
wi |Practice Questions with Step-by-Step
Explanations and Verified Solutions
AE merges three industry standard solutions: Argus valuation - DCF, asset management, and valuation-
capitalisation - ✔✔TRUE
In AE you can utilize shortcut keyboard commands to navigate within certain sections of the program -
✔✔TRUE
In AE, a user can add over 100 properties into a portfolio - ✔✔TRUE
What are the benefits of utilizing a Chart of Accounts? - ✔✔Easier to track revenues/expenses,
standardizes portfolio for names of all expenses/revenues, helps with accounting system integration
In AE you can only assign one Chart of Accounts to a portfolio? - ✔✔TRUE
The Discard Changes option will discard only the last change you have made to the property record -
✔✔FALSE
Only users with appropriate permissions can access all the features in the Control Panel - ✔✔TRUE
To lock down a specific property and restrict who can edit it, click the button located in the AE
ribbon bar - ✔✔Check Out Property
You can import and/or export vDCF Files from AE - ✔✔TRUE
The Expense Inflation Rate will be the default percentage for: - ✔✔Operating Expenses, non-operating
expenses, capital expenses
,Every inflation category must be given a number, or it will default to the General Inflation Rate -
✔✔FALSE
Assuming 60% occupancy calculate the Vending Machine Revenue in Year 1 of analysis - ✔✔13,000 X .6
= 7800
Assuming 0% occupancy calculate the Vending Machine Revenue in Year 1 of analysis - ✔✔13,000 X .0 =
0
Assuming 100% occupancy calculate the Vending Machine Revenue in Year 1 of analysis - ✔✔13000 X .1
Using the following screenshot, what is the capital expense amount that will appear on the cash flow -
✔✔60,000 x 1.03 x 1.03 = 63,654
Free Rent, by default, kicks in at the beginning of the - ✔✔Tenant's lease start date
The defautl recovery structure in AE is - ✔✔Net
The Available date column in the Tenants - Rent Roll, represents the start of the tenant's lease? -
✔✔FALSE
By default, Tenant Improvements and Leasing Commissions are paid at the start of the tenant's lease? -
✔✔TRUE
The upon expiration field within the market leasing profile allows users to select a different Market
leasing profile to be used after the first Market Leasing term is over. - ✔✔TRUE
Contract Renewal: - ✔✔Inserts a new contract lease into the rent roll
The inflation rates are displayed on which report? - ✔✔Property Summary
, Which report displays New Market, Renewal Market and Weighted Averages Results? - ✔✔Assumptions
report
When your resale calculation is set to CAP NOI (12 months after sale), which year's NOI will be used
when analyzing a 6-year analysis? - ✔✔7th
If 12% is a desired return, enter 12% in the parent tab - ✔✔Valuation
Use the following screenshot to answer this question: What will LB Corporation pay for reimbursements
in 2016? - ✔✔0 because its base year
Use the following screenshot to answer this question: What will LB Corporation pay for reimbursements
in 2017? - ✔✔2017 op expenses - 2016 op expenses
Use the following screenshot to answer this question: What will LB Corporation pay for reimbursements
in 2018? - ✔✔(2018 op expenses - 2017 op expenses) + 2017 reimbursements
If a tenant's space is available, but sitting vacant before they move in and you want to show that
vacancy on reports, what do you need to enter in for the Lease dates? - ✔✔The available date needs to
be when the space is available and the start date needs to be when the tenant's lease begins
Step Rent increases can be applied in the Step Rent field or in the Base rent varies window? - ✔✔TRUE
Use the following screenshot: Assuming a sale Date of December 2020, what will be the net proceeds
from sale if we have a resale calculation that capitalizes on the NOI 12 months after sale? Rounded to
nearest dollar - ✔✔(NOI yr 2021/10% cap rate) x (1 - .03) = 3,921,351
Use the following screenshot: Assuming a sale Date of December 2020, what will be the net proceeds
from sale if we have a resale calculation that capitalizes on the NOI of the sale year? Rounded to nearest
dollar - ✔✔(415,415/.1) x (1-.03) = 4,029,526
wi |Practice Questions with Step-by-Step
Explanations and Verified Solutions
AE merges three industry standard solutions: Argus valuation - DCF, asset management, and valuation-
capitalisation - ✔✔TRUE
In AE you can utilize shortcut keyboard commands to navigate within certain sections of the program -
✔✔TRUE
In AE, a user can add over 100 properties into a portfolio - ✔✔TRUE
What are the benefits of utilizing a Chart of Accounts? - ✔✔Easier to track revenues/expenses,
standardizes portfolio for names of all expenses/revenues, helps with accounting system integration
In AE you can only assign one Chart of Accounts to a portfolio? - ✔✔TRUE
The Discard Changes option will discard only the last change you have made to the property record -
✔✔FALSE
Only users with appropriate permissions can access all the features in the Control Panel - ✔✔TRUE
To lock down a specific property and restrict who can edit it, click the button located in the AE
ribbon bar - ✔✔Check Out Property
You can import and/or export vDCF Files from AE - ✔✔TRUE
The Expense Inflation Rate will be the default percentage for: - ✔✔Operating Expenses, non-operating
expenses, capital expenses
,Every inflation category must be given a number, or it will default to the General Inflation Rate -
✔✔FALSE
Assuming 60% occupancy calculate the Vending Machine Revenue in Year 1 of analysis - ✔✔13,000 X .6
= 7800
Assuming 0% occupancy calculate the Vending Machine Revenue in Year 1 of analysis - ✔✔13,000 X .0 =
0
Assuming 100% occupancy calculate the Vending Machine Revenue in Year 1 of analysis - ✔✔13000 X .1
Using the following screenshot, what is the capital expense amount that will appear on the cash flow -
✔✔60,000 x 1.03 x 1.03 = 63,654
Free Rent, by default, kicks in at the beginning of the - ✔✔Tenant's lease start date
The defautl recovery structure in AE is - ✔✔Net
The Available date column in the Tenants - Rent Roll, represents the start of the tenant's lease? -
✔✔FALSE
By default, Tenant Improvements and Leasing Commissions are paid at the start of the tenant's lease? -
✔✔TRUE
The upon expiration field within the market leasing profile allows users to select a different Market
leasing profile to be used after the first Market Leasing term is over. - ✔✔TRUE
Contract Renewal: - ✔✔Inserts a new contract lease into the rent roll
The inflation rates are displayed on which report? - ✔✔Property Summary
, Which report displays New Market, Renewal Market and Weighted Averages Results? - ✔✔Assumptions
report
When your resale calculation is set to CAP NOI (12 months after sale), which year's NOI will be used
when analyzing a 6-year analysis? - ✔✔7th
If 12% is a desired return, enter 12% in the parent tab - ✔✔Valuation
Use the following screenshot to answer this question: What will LB Corporation pay for reimbursements
in 2016? - ✔✔0 because its base year
Use the following screenshot to answer this question: What will LB Corporation pay for reimbursements
in 2017? - ✔✔2017 op expenses - 2016 op expenses
Use the following screenshot to answer this question: What will LB Corporation pay for reimbursements
in 2018? - ✔✔(2018 op expenses - 2017 op expenses) + 2017 reimbursements
If a tenant's space is available, but sitting vacant before they move in and you want to show that
vacancy on reports, what do you need to enter in for the Lease dates? - ✔✔The available date needs to
be when the space is available and the start date needs to be when the tenant's lease begins
Step Rent increases can be applied in the Step Rent field or in the Base rent varies window? - ✔✔TRUE
Use the following screenshot: Assuming a sale Date of December 2020, what will be the net proceeds
from sale if we have a resale calculation that capitalizes on the NOI 12 months after sale? Rounded to
nearest dollar - ✔✔(NOI yr 2021/10% cap rate) x (1 - .03) = 3,921,351
Use the following screenshot: Assuming a sale Date of December 2020, what will be the net proceeds
from sale if we have a resale calculation that capitalizes on the NOI of the sale year? Rounded to nearest
dollar - ✔✔(415,415/.1) x (1-.03) = 4,029,526
