Financial Reporting Flashcards
7 cards from real ASC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Financial Reporting flashcards as text
In ARGUS Enterprise, what does the 'Recoveries' section of the cash flow report represent?
Answer: Tenant reimbursements for operating expenses beyond base rent
Recoveries represent amounts tenants reimburse to the landlord for operating expenses such as CAM, insurance, and taxes above base rent.
Which ARGUS report format best compares actual property performance against the original underwriting assumptions?
Answer: Acquisition vs. Current scenario comparison
Comparing the Acquisition scenario against a Current scenario directly shows how performance has deviated from original underwriting assumptions.
When calculating NOI in ARGUS, which of the following items is typically EXCLUDED?
Answer: Debt service payments
NOI (Net Operating Income) is calculated before debt service; mortgage payments are a financing cost excluded from NOI.
What is the purpose of the 'Straight-Line Rent' adjustment in ARGUS financial reports?
Answer: To average rent over the lease term per GAAP accounting standards
GAAP requires straight-line rent, which spreads total contractual rent evenly over the lease term regardless of actual cash receipt timing.
In an ARGUS multi-tenant report, the 'Tenant Rollover' section primarily shows:
Answer: Lease expirations, renewals, and new leasing assumptions period by period
The Tenant Rollover section details when leases expire, which tenants renew, and what new leasing activity is projected in each period.
Which capitalization approach does ARGUS use by default to estimate reversion value at the end of the holding period?
Answer: Direct capitalization of the next year's projected NOI using a terminal cap rate
ARGUS defaults to applying a terminal (exit) cap rate to the next year's projected NOI to estimate the property's reversion value.
In ARGUS Enterprise, 'Absorption & Turnover Vacancy' differs from 'General Vacancy' in that it:
Answer: Accounts for time needed to re-lease space after a tenant vacates
Absorption & Turnover Vacancy captures the specific downtime between a tenant vacating and a new tenant commencing occupancy.