age 1 of 29
RECA Commercial FINAL EXAM STUDY GUIDE
2025/2026 COMPLETE QUESTIONS WITH VERIFIED
CORRECT SOLUTIONS || 100% GUARANTEED PASS
<RECENT VERSION>
Activity Report .....Answer.......used to reconcile the total amounts
of principal and interest due and paid within a specified period
of time.
Additional Rent .....Answer.......The amount owed by a commercial
tenant that represents the proportionate share of operating costs
as defined in the lease. Also called CAM or TMI
After-Tax Cash-on-Cash Return .....Answer.......Similar to Cash-
On-Cash return but adjusts for taxes during the first year.
,age 2 of 29
FORMULA: CFAT/Initial Investment
Capital Cost Allowance (CCA) .....Answer.......The portion of the
capital cost that may be deducted from income as a claim for
depreciation under the Income Tax Act. CCA acknowledges the
loss in value over the life of an asset and the ability to offset
income in relation to the cost of that asset.
CAP RATE .....Answer.......NOI / Purchase Price HIGHER IS BAD
Capital Stack .....Answer.......Financial Structure of the real estate
investment that evaluates the risk factors, probability of cash
flow and overall feasibility of the investment.
2 Types:
Equity (ownership interest)
, age 3 of 29
Cash-on-Cash Rate of Return .....Answer.......A measurement used
for analyzing an
investment. It is calculated by dividing the cash ow before taxes
(CFBT) by the amount of equity invested to purchase the
investment.
Clear Height .....Answer.......The unobstructed distance from oor
to ceiling.
Clear Span .....Answer.......The amount of oor area that is clear of
interference from columns
and support walls.
Discounted Cash Flow (DCF) Analysis .....Answer.......Forecasting
the cash flows a real estate
RECA Commercial FINAL EXAM STUDY GUIDE
2025/2026 COMPLETE QUESTIONS WITH VERIFIED
CORRECT SOLUTIONS || 100% GUARANTEED PASS
<RECENT VERSION>
Activity Report .....Answer.......used to reconcile the total amounts
of principal and interest due and paid within a specified period
of time.
Additional Rent .....Answer.......The amount owed by a commercial
tenant that represents the proportionate share of operating costs
as defined in the lease. Also called CAM or TMI
After-Tax Cash-on-Cash Return .....Answer.......Similar to Cash-
On-Cash return but adjusts for taxes during the first year.
,age 2 of 29
FORMULA: CFAT/Initial Investment
Capital Cost Allowance (CCA) .....Answer.......The portion of the
capital cost that may be deducted from income as a claim for
depreciation under the Income Tax Act. CCA acknowledges the
loss in value over the life of an asset and the ability to offset
income in relation to the cost of that asset.
CAP RATE .....Answer.......NOI / Purchase Price HIGHER IS BAD
Capital Stack .....Answer.......Financial Structure of the real estate
investment that evaluates the risk factors, probability of cash
flow and overall feasibility of the investment.
2 Types:
Equity (ownership interest)
, age 3 of 29
Cash-on-Cash Rate of Return .....Answer.......A measurement used
for analyzing an
investment. It is calculated by dividing the cash ow before taxes
(CFBT) by the amount of equity invested to purchase the
investment.
Clear Height .....Answer.......The unobstructed distance from oor
to ceiling.
Clear Span .....Answer.......The amount of oor area that is clear of
interference from columns
and support walls.
Discounted Cash Flow (DCF) Analysis .....Answer.......Forecasting
the cash flows a real estate
