Exam (elaborations)
CCIM 101 Financial Analysis Questions and Correct Answers.
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CCIM 101 Financial Analysis Questions and Correct Answers.
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CCIM 101 FinancialAnalysis Questions
and Correct Answers
What are the four basic components of NOI? - (CORRECT ANSWER)-1 - Potential rental
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income (PRI)
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2 - Vacancy and credit losses
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3 - Other income
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4 - Operating expenses
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[XXXX] is used to determine a property's PRI (Potential Rental Income.) - (CORRECT
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ANSWER)-Lease analysis
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, PRI equals NOI in what property/tenant scenario? - (CORRECT ANSWER)-If the property
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has one tenant with a long-term absolute NNN lease.
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[XXXX] is PRI minus vacancy and collection losses. - (CORRECT ANSWER)-ERI (Effective
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Rental Income)
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Name some items which are EXCLUDED from Operating Expenses. - (CORRECT ANSWER)-
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Interest and principal on debt on the property
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Depreciation (cost recovery) v v
Capital Expenditures
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Income Taxes v
Reserves for Replacement v v
Tenant Improvements
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True or False: Depreciation is included in Operating Expenses. - (CORRECT ANSWER)-
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False
True of False: Principal and interest on debt financing is included in Operating Expenses -
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(CORRECT ANSWER)-False. This is an expense of ownership, not an operating expense.
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True or False: Capital Expenditures are included in Operating Expenses. - (CORRECT
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ANSWER)-False. They are written off over a period of years.
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