EXAM QUESTIONS AND CORRECT ANSWERS
CCIM 101 – Financial Analysis
Comprehensive Practice Exam
Time: 2 Hours
Questions: 50
Instructions: Select the best answer for each question.
1. Net Operating Income (NOI) is calculated as:
A. Gross Income – Debt Service
B. Effective Gross Income – Operating Expenses
C. Potential Gross Income – Capital Expenses
D. Rental Income – Taxes
Answer: B
2. Which expense is NOT included in operating expenses?
A. Property Management
B. Insurance
C. Mortgage Payments
,D. Maintenance
Answer: C
3. Capitalization Rate (Cap Rate) equals:
A. NOI ÷ Purchase Price
B. Purchase Price ÷ NOI
C. Cash Flow ÷ Equity
D. Gross Income ÷ Price
Answer: A
4. If NOI is $120,000 and the property value is $1,500,000, the cap
rate is:
A. 6%
B. 7%
C. 8%
D. 10%
Answer: C
5. Loan-to-Value (LTV) ratio measures:
A. Income to debt
B. Loan amount relative to property value
, C. Operating expenses relative to income
D. Cash flow relative to equity
Answer: B
6. Debt Service Coverage Ratio (DSCR) equals:
A. NOI ÷ Annual Debt Service
B. Gross Income ÷ Debt
C. Debt ÷ NOI
D. Cash Flow ÷ Mortgage
Answer: A
7. A DSCR of 1.30 means:
A. Income is insufficient
B. NOI covers debt service by 130%
C. Debt exceeds income
D. Property has negative cash flow
Answer: B
8. Potential Gross Income (PGI) assumes:
A. Full occupancy
B. Current occupancy