CAM Financial Analysis and Reporting 2

Question 1

A property has a Gross Potential Rent (GPR) of $500,000 and collects $460,000 in actual rent. What is the collection loss percentage?

Accepted Answer

8%

Answer

6%

Answer

4%

Answer

10%

Question 2

Which financial metric best measures how efficiently a property converts revenue into net operating income?

Accepted Answer

Operating expense ratio

Answer

Cap rate

Answer

Debt service coverage ratio

Answer

Loan-to-value ratio

Question 3

On a property income statement, 'concessions' are best classified as:

Accepted Answer

A reduction to gross potential rent

Answer

An operating expense

Answer

A capital expenditure

Answer

A liability

Question 4

A manager notices the utility expense line is 20% over budget midyear. The FIRST corrective step should be to:

Accepted Answer

Investigate the cause of the variance before taking action

Answer

Immediately reduce maintenance spending to offset the overage

Answer

Notify ownership that the budget was set incorrectly

Answer

Pass the cost increase to residents via a utility billing addendum

Question 5

Which document provides a forward-looking projection of all expected income and expenses for a 12-month period?

Accepted Answer

Annual operating budget

Answer

Income statement

Answer

Balance sheet

Answer

Cash flow statement

Question 6

A property's NOI is $360,000 and the purchase price is $4,500,000. What is the cap rate?

Accepted Answer

8%

Answer

10%

Answer

6%

Answer

12%

Question 7

When preparing a monthly owner's report, variance analysis compares actual results to:

Accepted Answer

The approved budget for the same period

Answer

The prior year's actual results only

Answer

Industry benchmark averages

Answer

The property's pro forma at acquisition