IREM MNT 402 UPDATED FINAL EXAM 2026 QUESTIONS
AND ANSWERS SURE A+
Care or upkeep of a property and all its components - ✔✔Maintenance
✔✔Process of controlling or reducing risk to acceptable levels - ✔✔Risk management
✔✔The control of _______ affects the owner's bottom line more than any other
operating expense - ✔✔Maintenance Costs
✔✔First step of the maintenance and risk management cycle. Produces the property
information report and initial inspection results - ✔✔Assess
✔✔Contains detailed information about a property that gives an overall picture of a
property and its history - ✔✔Property information report
✔✔Steps to Maintenance and Risk Management Process - ✔✔Assess —> Plan —>
Execute —> Evaluate
✔✔The _____ is the guide that provides the tasks and steps needed to implement the
maintenance and risk management program for the property - ✔✔Maintenance & Risk
Management Policy and Procedure Manual
✔✔Incurred during the normal course of running a business, such as the electric Bill or
payroll - ✔✔Operating expenses
✔✔A ______ expense is made to acquire a long-term asset—one that is considered to
add value to an asset and contribute to its long-term profitability - ✔✔Capital
✔✔New building construction costs and/or major improvements or alterations to a
building are considered _________ - ✔✔Capital expenses
✔✔Whenever a capital improvement is made, __________, monitored and adjusted
throughout its life cycle - ✔✔a plan for its replacement should be made
✔✔Replacements are not normally considered capital expenditures unless they _____
the value of an asset (I.e. replacing carpet with the same carpet as was there prior
doesn't count) - ✔✔Increase
✔✔Three Types of Maintenance - ✔✔Preventative, Corrective, Deferred
AND ANSWERS SURE A+
Care or upkeep of a property and all its components - ✔✔Maintenance
✔✔Process of controlling or reducing risk to acceptable levels - ✔✔Risk management
✔✔The control of _______ affects the owner's bottom line more than any other
operating expense - ✔✔Maintenance Costs
✔✔First step of the maintenance and risk management cycle. Produces the property
information report and initial inspection results - ✔✔Assess
✔✔Contains detailed information about a property that gives an overall picture of a
property and its history - ✔✔Property information report
✔✔Steps to Maintenance and Risk Management Process - ✔✔Assess —> Plan —>
Execute —> Evaluate
✔✔The _____ is the guide that provides the tasks and steps needed to implement the
maintenance and risk management program for the property - ✔✔Maintenance & Risk
Management Policy and Procedure Manual
✔✔Incurred during the normal course of running a business, such as the electric Bill or
payroll - ✔✔Operating expenses
✔✔A ______ expense is made to acquire a long-term asset—one that is considered to
add value to an asset and contribute to its long-term profitability - ✔✔Capital
✔✔New building construction costs and/or major improvements or alterations to a
building are considered _________ - ✔✔Capital expenses
✔✔Whenever a capital improvement is made, __________, monitored and adjusted
throughout its life cycle - ✔✔a plan for its replacement should be made
✔✔Replacements are not normally considered capital expenditures unless they _____
the value of an asset (I.e. replacing carpet with the same carpet as was there prior
doesn't count) - ✔✔Increase
✔✔Three Types of Maintenance - ✔✔Preventative, Corrective, Deferred
