Page |1
** Chapter 14 - Gold Coast Real Estate
Homework Questions and Correct
Answers/ Latest Update / Already Graded
What is the purpose of the closing statement?
(a) To summarize the financial aspects of a real estate transaction
(b) To determine the purchase price of the property
(c) To determine which party pays the brokerage commission
(d) To report income to the Internal Revenue Service
Ans: (a) To summarize the financial aspects of a real estate
transaction
Which of the following correctly lists the taxes that the buyer must
typically pay when purchasing a home with a new mortgage?
(a) Note tax only
All rights reserved © 2025/ 2026 |
, Page |2
(b) Intangible tax only
(c) Documentary stamp tax on the deed only
(d) Both the intangible tax and the note tax
Ans:
Which entry would normally appear as a debit on the buyer's
statement?
(a) First mortgage balance being assumed
(b) Intangible tax on a new mortgage
(c) Documentary stamps on the deed
(d) Impound account balance when a loan is being assumed
Ans: (b) Intangible tax on a new mortgage
Which of the following statements best describes a single-entry item?
All rights reserved © 2025/ 2026 |
, Page |3
(a) It appears on both the buyer's and seller's statements.
(b) It is not paid at closing.
(c) It must be accounted for in the broker's statement.
(d) It is always a credit.
Ans: (c) It must be accounted for in the broker's statement.
A property closes on August 12th. The annual property taxes are
$9,750.00. The day of closing belongs to the buyer. How will the
proration appear on the closing statement?
(a) Debit the Seller and Credit the Buyer $5,956.85.
(b) Debit the Buyer and Credit the Seller $5,956.85.
(c) Debit the Seller and Credit the Buyer $3,793.15.
All rights reserved © 2025/ 2026 |
** Chapter 14 - Gold Coast Real Estate
Homework Questions and Correct
Answers/ Latest Update / Already Graded
What is the purpose of the closing statement?
(a) To summarize the financial aspects of a real estate transaction
(b) To determine the purchase price of the property
(c) To determine which party pays the brokerage commission
(d) To report income to the Internal Revenue Service
Ans: (a) To summarize the financial aspects of a real estate
transaction
Which of the following correctly lists the taxes that the buyer must
typically pay when purchasing a home with a new mortgage?
(a) Note tax only
All rights reserved © 2025/ 2026 |
, Page |2
(b) Intangible tax only
(c) Documentary stamp tax on the deed only
(d) Both the intangible tax and the note tax
Ans:
Which entry would normally appear as a debit on the buyer's
statement?
(a) First mortgage balance being assumed
(b) Intangible tax on a new mortgage
(c) Documentary stamps on the deed
(d) Impound account balance when a loan is being assumed
Ans: (b) Intangible tax on a new mortgage
Which of the following statements best describes a single-entry item?
All rights reserved © 2025/ 2026 |
, Page |3
(a) It appears on both the buyer's and seller's statements.
(b) It is not paid at closing.
(c) It must be accounted for in the broker's statement.
(d) It is always a credit.
Ans: (c) It must be accounted for in the broker's statement.
A property closes on August 12th. The annual property taxes are
$9,750.00. The day of closing belongs to the buyer. How will the
proration appear on the closing statement?
(a) Debit the Seller and Credit the Buyer $5,956.85.
(b) Debit the Buyer and Credit the Seller $5,956.85.
(c) Debit the Seller and Credit the Buyer $3,793.15.
All rights reserved © 2025/ 2026 |
