CERTIFIED APARTMENT MANAGER PRACTICE EXAM TEST
QUESTIONS AND ANSWERS GRADED A+
✔✔What does a balance sheet represent and what three sections are included -
✔✔Balance sheet is a re-presentation of the financial status of the property at an instant
of time. assets liabilities and equity
✔✔What does income statement measure - ✔✔Performance for a span in time a-month
quarter or longer
✔✔Define cash flow - ✔✔Cash flow is the amount of money left after all sources of
income are collected and operating expenses capital expenses including replacement
reserve payments if required and debt services have been paid
✔✔What is gross potential rent - ✔✔It combines the sum of occupied units at current
lease rates plus vacant unit at market rate
✔✔Vacancy - ✔✔The total value of rent lost from vacant units concessions given
collection losses as a result of writing off Bad debt and the total amount of rent loss from
any nonrevenue units
✔✔Effective gross rent EGI - ✔✔Effective Gross income is the amount of GPR less
vacancy session and collection loss effective gross income may also be called net
rental income or total rental income
✔✔Gross potential rent minus vacancy equals - ✔✔EGI effective gross rent
✔✔Gross operating income GOI - ✔✔The sum of the effective gross income and other
income stated in other manner it is simply total revenue
✔✔EGI + OI = - ✔✔GOI
✔✔Net operating income and NOI - ✔✔Income is GLOI or total revenue last 0E
✔✔GOI - OE = - ✔✔NOI
✔✔What is the operating expense ratio and how is it calculated - ✔✔The ratio
calculates the percentage of the GPR that is being used to pay operating expenses the
ratio depends on the age of the property it's location type and what expenses are
included
OE + DS = x / GOI
QUESTIONS AND ANSWERS GRADED A+
✔✔What does a balance sheet represent and what three sections are included -
✔✔Balance sheet is a re-presentation of the financial status of the property at an instant
of time. assets liabilities and equity
✔✔What does income statement measure - ✔✔Performance for a span in time a-month
quarter or longer
✔✔Define cash flow - ✔✔Cash flow is the amount of money left after all sources of
income are collected and operating expenses capital expenses including replacement
reserve payments if required and debt services have been paid
✔✔What is gross potential rent - ✔✔It combines the sum of occupied units at current
lease rates plus vacant unit at market rate
✔✔Vacancy - ✔✔The total value of rent lost from vacant units concessions given
collection losses as a result of writing off Bad debt and the total amount of rent loss from
any nonrevenue units
✔✔Effective gross rent EGI - ✔✔Effective Gross income is the amount of GPR less
vacancy session and collection loss effective gross income may also be called net
rental income or total rental income
✔✔Gross potential rent minus vacancy equals - ✔✔EGI effective gross rent
✔✔Gross operating income GOI - ✔✔The sum of the effective gross income and other
income stated in other manner it is simply total revenue
✔✔EGI + OI = - ✔✔GOI
✔✔Net operating income and NOI - ✔✔Income is GLOI or total revenue last 0E
✔✔GOI - OE = - ✔✔NOI
✔✔What is the operating expense ratio and how is it calculated - ✔✔The ratio
calculates the percentage of the GPR that is being used to pay operating expenses the
ratio depends on the age of the property it's location type and what expenses are
included
OE + DS = x / GOI
