FREE CAM Financial & Budgeting Responsibilities Questions and Answers
What is the primary goal of budgeting in apartment management?
Correct!
Wrong!
Budgeting helps property managers plan expenses, allocate resources, and ensure profitability.
What is the purpose of a capital expenditure budget?
Correct!
Wrong!
A capital expenditure budget is used for major property improvements, such as roofing, HVAC, and structural upgrades.
What is a key strategy to maintain a property's cash flow?
Correct!
Wrong!
Reducing unnecessary expenses while maintaining property value helps ensure positive cash flow.
Which factor should be considered when setting rental rates?
Correct!
Wrong!
Market trends, property amenities, and location influence rental pricing strategies.
Why is maintaining a reserve fund important in property management?
Correct!
Wrong!
A reserve fund provides financial security for unexpected repairs and capital improvements.
Which financial document tracks a property's income and expenses?
Correct!
Wrong!
The profit and loss statement summarizes a property's revenue, operating expenses, and net income.