QUIZ #1 IAAO COURSE 102
QUESTIONS AND ANSWERS
Capitalization is the process used to: - ans-convert income into an estimate of value sw sw sw sw sw sw sw sw sw sw sw sw sw
fixed-rate mortgage - ans- sw sw sw
A loan secured by real property featuring an interest rate that is constant for the term of the
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
loan is referred to as a (an):
sw sw sw sw sw sw sw
anticipation - ans- sw sw
The underlying principle providing the basis of the income capitalization approach is:
sw sw sw sw sw sw sw sw sw sw sw
income divided by rate equals value - ans- sw sw sw sw sw sw sw
The basic equation used in the income approach to value is:
sw sw sw sw sw sw sw sw sw sw
deficit rent - ans-When market rent exceeds contract rent the difference is known as:
sw sw sw sw sw sw sw sw sw sw sw sw sw
market rent - ans- sw sw sw
The rental income that a property would most probably command in the open market is cal
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
led
effective gross income - ans- sw sw sw sw
The anticipated income from all operations of the property adjusted for vacancy and collec
sw sw sw sw sw sw sw sw sw sw sw sw sw
tion losses, and miscellaneous income is called:
sw sw sw sw sw sw
0.47 - ans- sw sw
If an income property has an annual effective gross income of $64,000 with total expenses
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
of $30,000 and variable expenses of $17,000, what is the operating expense ratio?
sw sw sw sw sw sw sw sw sw sw sw sw sw
44 percent - ans-
sw sw sw
operating expenses are $205,000, what is the operating expense ratio (rounded)?
sw sw sw sw sw sw sw sw sw sw
potential gross income is $500,000. The vacancy and collection loss allowance is 6 perce
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
nt. If I n reconstructing an income statement for an apartment complex, you estimate that t
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
he
$360,000; $349,200; $237,456 - ans- sw sw sw sw
The subject is an office building which contains 30,000 square feet of building area, and 2
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
4,000 square feet of net rentable area. The market rent for similar space is $15.00 per squ
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
are foot of net rentable area. Vacancy and collection losses are 3% of potential gross inco
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
QUESTIONS AND ANSWERS
Capitalization is the process used to: - ans-convert income into an estimate of value sw sw sw sw sw sw sw sw sw sw sw sw sw
fixed-rate mortgage - ans- sw sw sw
A loan secured by real property featuring an interest rate that is constant for the term of the
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
loan is referred to as a (an):
sw sw sw sw sw sw sw
anticipation - ans- sw sw
The underlying principle providing the basis of the income capitalization approach is:
sw sw sw sw sw sw sw sw sw sw sw
income divided by rate equals value - ans- sw sw sw sw sw sw sw
The basic equation used in the income approach to value is:
sw sw sw sw sw sw sw sw sw sw
deficit rent - ans-When market rent exceeds contract rent the difference is known as:
sw sw sw sw sw sw sw sw sw sw sw sw sw
market rent - ans- sw sw sw
The rental income that a property would most probably command in the open market is cal
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
led
effective gross income - ans- sw sw sw sw
The anticipated income from all operations of the property adjusted for vacancy and collec
sw sw sw sw sw sw sw sw sw sw sw sw sw
tion losses, and miscellaneous income is called:
sw sw sw sw sw sw
0.47 - ans- sw sw
If an income property has an annual effective gross income of $64,000 with total expenses
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
of $30,000 and variable expenses of $17,000, what is the operating expense ratio?
sw sw sw sw sw sw sw sw sw sw sw sw sw
44 percent - ans-
sw sw sw
operating expenses are $205,000, what is the operating expense ratio (rounded)?
sw sw sw sw sw sw sw sw sw sw
potential gross income is $500,000. The vacancy and collection loss allowance is 6 perce
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
nt. If I n reconstructing an income statement for an apartment complex, you estimate that t
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
he
$360,000; $349,200; $237,456 - ans- sw sw sw sw
The subject is an office building which contains 30,000 square feet of building area, and 2
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
4,000 square feet of net rentable area. The market rent for similar space is $15.00 per squ
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
are foot of net rentable area. Vacancy and collection losses are 3% of potential gross inco
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
