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Miscellaneous - WI Real Estate Exam
Questions with Detailed Verified Answers
What is the name for the process whereby records kept for the brokerage
trust account are compared to make sure they all agree?
Bank reconciliation
Posting to the ledger
Posting to the trial balance
Validation Ans: Validation
Debbie is a Wisconsin broker. How often must she update the cash
journal for the brokerage's trust account?
Each time a deposit or withdrawal is made
Once per month
Once per week
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Whenever it's convenient Ans: Each time a deposit or withdrawal is
made
What's the purpose of a ledger, as it pertains to trust account record
keeping?
It reconciles the bank statement balance with the cash journal.
It records the fund deposited and withdrawn from the trust account.
It's used to post transactions from the cash journal to individual client
accounts.
It validates that all of the other records agree with one another. Ans:
It's used to post transactions from the cash journal to individual client
accounts.
While preparing for her licensing exam, Anne Marie helped her neighbors
sell their home with the understanding that they'd pay her a commission
once she became licensed. When she passed her exam and became
licensed, her former neighbors refused to pay her, and she filed a lawsuit
seeking payment. Can she do this?
No, because all commission payments must be made at closing.
No, because she didn't have a license when she performed services for
them.
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Yes, if Anne Marie can prove she provided brokerage services.
Yes, if the agreement was in writing. Ans: No, because she didn't have
a license when she performed services for them.
Zach wants to purchase a property that's subject to an existing lease
agreement, which includes the tenant's right to renew the lease. What is
Zach's obligation, if any, to uphold the terms of the lease agreement?
As the new owner and landlord, Zach can disregard the renewal option.
As the new owner and landlord, Zach can terminate the existing lease.
Zach is under no obligation to uphold any part of the existing lease
agreement.
Zach must honor that right and allow the tenant to renew at the end of
the term. Ans: Zach must honor that right and allow the tenant to
renew at the end of the term.
Kevin, a Wisconsin broker, is affiliated with Lakeside Properties. He also
works as an independent broker when selling resort-area properties in
Wisconsin. Can Kevin hire other licensees to work for him in his
independent practice?
No, though he can hire an unlicensed assistant.
Miscellaneous - WI Real Estate Exam
Questions with Detailed Verified Answers
What is the name for the process whereby records kept for the brokerage
trust account are compared to make sure they all agree?
Bank reconciliation
Posting to the ledger
Posting to the trial balance
Validation Ans: Validation
Debbie is a Wisconsin broker. How often must she update the cash
journal for the brokerage's trust account?
Each time a deposit or withdrawal is made
Once per month
Once per week
, Page | 2
Whenever it's convenient Ans: Each time a deposit or withdrawal is
made
What's the purpose of a ledger, as it pertains to trust account record
keeping?
It reconciles the bank statement balance with the cash journal.
It records the fund deposited and withdrawn from the trust account.
It's used to post transactions from the cash journal to individual client
accounts.
It validates that all of the other records agree with one another. Ans:
It's used to post transactions from the cash journal to individual client
accounts.
While preparing for her licensing exam, Anne Marie helped her neighbors
sell their home with the understanding that they'd pay her a commission
once she became licensed. When she passed her exam and became
licensed, her former neighbors refused to pay her, and she filed a lawsuit
seeking payment. Can she do this?
No, because all commission payments must be made at closing.
No, because she didn't have a license when she performed services for
them.
, Page | 3
Yes, if Anne Marie can prove she provided brokerage services.
Yes, if the agreement was in writing. Ans: No, because she didn't have
a license when she performed services for them.
Zach wants to purchase a property that's subject to an existing lease
agreement, which includes the tenant's right to renew the lease. What is
Zach's obligation, if any, to uphold the terms of the lease agreement?
As the new owner and landlord, Zach can disregard the renewal option.
As the new owner and landlord, Zach can terminate the existing lease.
Zach is under no obligation to uphold any part of the existing lease
agreement.
Zach must honor that right and allow the tenant to renew at the end of
the term. Ans: Zach must honor that right and allow the tenant to
renew at the end of the term.
Kevin, a Wisconsin broker, is affiliated with Lakeside Properties. He also
works as an independent broker when selling resort-area properties in
Wisconsin. Can Kevin hire other licensees to work for him in his
independent practice?
No, though he can hire an unlicensed assistant.
