CAM 2024 Exam Part II Questions & Answers

CAM 2024 Exam Part II Questions & Answers In financial terms a liability is: - ANSWERSAny money owed to non-owners In mortgage terms, the word principle means: - ANSWERSThe amount of money borrowed. What four factors are considered when making an investment? - ANSWERSSafety (Risk), liquidity, growth potential, income A disadvantage of investing in real estate might be - ANSWERSThe amount of active participation required One advantage of investing in real estate is: - ANSWERSAbility to invest using borrowed funds A fixed rate mortgage: - ANSWERSHas a fixed interest rate for the term of the loan In financial terms, an asset is: - ANSWERSan economic resource that benefits the investment A balloon mortgage: - ANSWERSRefers to a mortgage that is not fully amortized at maturity AND is a mortgage that requires a lump sum payment of the outstanding balance. True or False: A balance sheet represents the financial status at a moment in time. - ANSWERSTRUE True or False: Accrual basis accounting records all income and expenses when they were actually received or paid. - ANSWERSFALSE True or False: Capital expenses general refer to expenses incurred when improving the land or building, machinery and equipment. - ANSWERSTRUE