Practice Test Geeks(ASC) Argus Software Certification Practice Test
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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.

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  1. In ARGUS Enterprise, the 'Lease Expiration Schedule' report is most useful for:

    Answer: Identifying concentration risk and future rollover exposure by year

    The Lease Expiration Schedule highlights how much GLA and revenue expires each year, revealing concentration risk and future leasing demand.

  2. When ARGUS applies a 'CPI' rent escalation to a lease, the annual rent increase is tied to:

    Answer: The Consumer Price Index, which adjusts rent with inflation

    CPI escalations link rent increases to the published Consumer Price Index, so rent grows in line with general price inflation.

  3. Which line item in an ARGUS report represents the total projected sale proceeds before selling costs?

    Answer: Gross Reversion

    Gross Reversion is the total sale price at the end of the holding period before deducting selling costs or loan payoff.

  4. In ARGUS, 'Leasing Commissions' (LCs) are typically entered as:

    Answer: A percentage of total lease value, paid at lease commencement

    LCs are typically a percentage of total lease value (base rent × term) paid as a lump sum when the lease is executed or tenant takes occupancy.

  5. What is the effect on ARGUS output if the terminal cap rate entered is LOWER than the going-in cap rate?

    Answer: The reversion value will be higher relative to exit-year NOI, implying cap rate compression

    A lower terminal cap rate means investors will pay more per dollar of NOI at exit, increasing the reversion value and boosting projected returns.

  6. In ARGUS, the 'Weighted Average Lease Term' (WALT) metric is important to lenders because:

    Answer: It measures the average remaining lease duration, indicating income stability

    WALT indicates how long, on average, existing leases will continue to produce income, giving lenders confidence in cash flow stability over the loan term.

  7. In ARGUS Enterprise, the 'Market Leasing Assumptions' (MLAs) control which of the following?

    Answer: Default lease terms applied to vacant spaces and expiring leases not renewed by current tenants

    MLAs define the default lease terms—rent, term, TIs, LCs, free rent, and downtime—applied when a space becomes available and a new tenant is assumed.