IAAO 102 Test 1 Questions with Correct
Answers
A gross income multiplier (GIM), as used in a commercial appraisal, is obtained by
dividing the ____________________________.
A. sale price by annual gross income
B. sale price by monthly gross income
C. overall capitalization rate by the sale price
D. annual gross income by the sale price
A gross income multiplier (GIM), as used in a commercial appraisal, is obtained by dividing
the ____________________________.
A. sale price by annual gross income
B. sale price by monthly gross income
C. overall capitalization rate by the sale price
D. annual gross income by the sale price
will be on exam
The borrowing of funds in hopes of earning a greater return than the cost of the
borrowed funds is known as __________________.
A appreciation
B liquidity
C leverage
D none of the above
, The borrowing of funds in hopes of earning a greater return than the cost of the borrowed
funds is known as __________________.
A appreciation
B liquidity
C leverage
D none of the above
will be on exam
Direct capitalization is a valid method when the overall rate is developed from sales in
which _____________________________________________________.
A. the land-to-building ratios are similar to those of the subject property
B. the remaining economic lives are similar to those of the subject property
C. the income and expense ratios are similar to those of the subject property
D. all of the above
Direct capitalization is a valid method when the overall rate is developed from sales in which
_____________________________________________________.
A. the land-to-building ratios are similar to those of the subject property
B. the remaining economic lives are similar to those of the subject property
C. the income and expense ratios are similar to those of the subject property
D. all of the above
will be on exam
Answers
A gross income multiplier (GIM), as used in a commercial appraisal, is obtained by
dividing the ____________________________.
A. sale price by annual gross income
B. sale price by monthly gross income
C. overall capitalization rate by the sale price
D. annual gross income by the sale price
A gross income multiplier (GIM), as used in a commercial appraisal, is obtained by dividing
the ____________________________.
A. sale price by annual gross income
B. sale price by monthly gross income
C. overall capitalization rate by the sale price
D. annual gross income by the sale price
will be on exam
The borrowing of funds in hopes of earning a greater return than the cost of the
borrowed funds is known as __________________.
A appreciation
B liquidity
C leverage
D none of the above
, The borrowing of funds in hopes of earning a greater return than the cost of the borrowed
funds is known as __________________.
A appreciation
B liquidity
C leverage
D none of the above
will be on exam
Direct capitalization is a valid method when the overall rate is developed from sales in
which _____________________________________________________.
A. the land-to-building ratios are similar to those of the subject property
B. the remaining economic lives are similar to those of the subject property
C. the income and expense ratios are similar to those of the subject property
D. all of the above
Direct capitalization is a valid method when the overall rate is developed from sales in which
_____________________________________________________.
A. the land-to-building ratios are similar to those of the subject property
B. the remaining economic lives are similar to those of the subject property
C. the income and expense ratios are similar to those of the subject property
D. all of the above
will be on exam
