Financial Analysis-CCIM 101 ACTUAL EXAM 2025 TEST
COMPREHENSIVE QUESTIONS AND VERIFIED ANSWERS
(DETAILED & ELABORATED) 100% SOLVED 2025!!
What are the four basic components of NOI? - ANSWER✔✔-1 - Potential rental income
(PRI)
2 - Vacancy and credit losses
3 - Other income
4 - Operating expenses
[XXXX] is used to determine a property's PRI (Potential Rental Income.) - ANSWER✔✔-
Lease analysis
PRI equals NOI in what property/tenant scenario? - ANSWER✔✔-If the property has
one tenant with a long-term absolute NNN lease.
[XXXX] is PRI minus vacancy and collection losses. - ANSWER✔✔-ERI (Effective Rental
Income)
Name some items which are EXCLUDED from Operating Expenses. - ANSWER✔✔-
Interest and principal on debt on the property
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, Depreciation (cost recovery)
Capital Expenditures
Income Taxes
Reserves for Replacement
Tenant Improvements
True or False: Depreciation is included in Operating Expenses. - ANSWER✔✔-False
True of False: Principal and interest on debt financing is included in Operating
Expenses - ANSWER✔✔-False. This is an expense of ownership, not an operating
expense.
True or False: Capital Expenditures are included in Operating Expenses. -
ANSWER✔✔-False. They are written off over a period of years.
True of False: Income Taxes are included in Operating Expenses - ANSWER✔✔-False
True of False: Reserves for Replacement are included in Operating Expenses -
ANSWER✔✔-False
True of False: Tenant Improvements (TI) are included in Operating Expenses -
ANSWER✔✔-False
True of False: Repairs and Maintenance are included in Operating Expenses -
ANSWER✔✔-True
OLIVIA GREENWAYS© 2025, ALL RIGHTS RESRVED 2
COMPREHENSIVE QUESTIONS AND VERIFIED ANSWERS
(DETAILED & ELABORATED) 100% SOLVED 2025!!
What are the four basic components of NOI? - ANSWER✔✔-1 - Potential rental income
(PRI)
2 - Vacancy and credit losses
3 - Other income
4 - Operating expenses
[XXXX] is used to determine a property's PRI (Potential Rental Income.) - ANSWER✔✔-
Lease analysis
PRI equals NOI in what property/tenant scenario? - ANSWER✔✔-If the property has
one tenant with a long-term absolute NNN lease.
[XXXX] is PRI minus vacancy and collection losses. - ANSWER✔✔-ERI (Effective Rental
Income)
Name some items which are EXCLUDED from Operating Expenses. - ANSWER✔✔-
Interest and principal on debt on the property
OLIVIA GREENWAYS© 2025, ALL RIGHTS RESRVED 1
, Depreciation (cost recovery)
Capital Expenditures
Income Taxes
Reserves for Replacement
Tenant Improvements
True or False: Depreciation is included in Operating Expenses. - ANSWER✔✔-False
True of False: Principal and interest on debt financing is included in Operating
Expenses - ANSWER✔✔-False. This is an expense of ownership, not an operating
expense.
True or False: Capital Expenditures are included in Operating Expenses. -
ANSWER✔✔-False. They are written off over a period of years.
True of False: Income Taxes are included in Operating Expenses - ANSWER✔✔-False
True of False: Reserves for Replacement are included in Operating Expenses -
ANSWER✔✔-False
True of False: Tenant Improvements (TI) are included in Operating Expenses -
ANSWER✔✔-False
True of False: Repairs and Maintenance are included in Operating Expenses -
ANSWER✔✔-True
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