CCIM 101 - FINANCIAL ANALYSIS EXAM | WITH COMPLETE QUESTIONS AND ANSWERS | 2025/206 LATEST UPDATED | 100 % RATED AND VERIFIED SOLUTIONS | GET AN A+

CCIM 101 - FINANCIAL ANALYSIS EXAM | WITH COMPLETE

QUESTIONS AND ANSWERS | 2025/206 LATEST UPDATED | 100 %

RATED AND VERIFIED SOLUTIONS | GET AN A+

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

, 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