CPM Financial Management 3

Question 1

Which of the following is a common method to estimate property value using income?

Accepted Answer

Income capitalization approach

Answer

Sales comparison approach

Answer

Cost approach

Answer

Residual approach

Question 2

What is 'loss to lease' in apartment management?

Accepted Answer

The difference between market rent and actual contracted rent on existing leases

Answer

Rent lost due to evictions

Answer

Security deposits that are not returned

Answer

Revenue lost from amenity closures

Question 3

Which financial report shows a snapshot of assets, liabilities, and equity at a specific point in time?

Accepted Answer

Balance sheet

Answer

Income statement

Answer

Cash flow statement

Answer

Operating budget

Question 4

What is 'straight-line depreciation' used for in property management accounting?

Accepted Answer

Allocating the cost of a capital asset evenly over its useful life

Answer

Calculating rent increases over time

Answer

Estimating future property value

Answer

Measuring tenant turnover costs

Question 5

A property has a GPI of $500,000, vacancy loss of $25,000, and other income of $10,000. What is the EGI?

Accepted Answer

$485,000

Answer

$475,000

Answer

$510,000

Answer

$525,000

Question 6

Which lease structure requires the tenant to pay base rent plus their proportionate share of property taxes, insurance, and maintenance?

Accepted Answer

Triple net (NNN) lease

Answer

Gross lease

Answer

Modified gross lease

Answer

Percentage lease