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FI 334 Property Management Exam 2
Questions And Answers 100% Verified And
Updated.
Which of these situations would increase gross potential income? - Answer✔Renting storage
space previously not considered rentable
A common goal for a real estate manager is to maximize which of the following? - Answer✔Net
operating income
NOI is determined by - Answer✔Effective Gross Income - Operating Expense
Debt service is - Answer✔Payment required to repay the principal & int on a mortgage loan
Subtracting operating expense from effective gross income yields: - Answer✔Net operating
income
The market value of income producing real estate may be estimated by: - Answer✔Dividing NOI
by the capitalization rate
Taxes on profits from real property are usually levied against: - Answer✔The individual
investors personal income
Which of the following expenditures probably would not be paid from a reserve fund? -
Answer✔Monthly electricity expenses
A chart of accounts is: - Answer✔A listing of specific income and expense categories
Is this cash-basis accounting? 2 months rent recorded the first month and then the following -
Answer✔False
What is the best interval for paydays for management staff? - Answer✔Twice a month
Why do some res prop. Managers separate int. painting and decorating from maintenance/
repair? - Answer✔Int. paint/décor is a freq recurring exp & soley 4 appeal
Umbrella liability insurance protects the insured against: - Answer✔Liability costs that are in
excess of the basic liability policy
The principal record of a property's income is the: - Answer✔Rent roll
1|Page
FI 334 Property Management Exam 2
Questions And Answers 100% Verified And
Updated.
Which of these situations would increase gross potential income? - Answer✔Renting storage
space previously not considered rentable
A common goal for a real estate manager is to maximize which of the following? - Answer✔Net
operating income
NOI is determined by - Answer✔Effective Gross Income - Operating Expense
Debt service is - Answer✔Payment required to repay the principal & int on a mortgage loan
Subtracting operating expense from effective gross income yields: - Answer✔Net operating
income
The market value of income producing real estate may be estimated by: - Answer✔Dividing NOI
by the capitalization rate
Taxes on profits from real property are usually levied against: - Answer✔The individual
investors personal income
Which of the following expenditures probably would not be paid from a reserve fund? -
Answer✔Monthly electricity expenses
A chart of accounts is: - Answer✔A listing of specific income and expense categories
Is this cash-basis accounting? 2 months rent recorded the first month and then the following -
Answer✔False
What is the best interval for paydays for management staff? - Answer✔Twice a month
Why do some res prop. Managers separate int. painting and decorating from maintenance/
repair? - Answer✔Int. paint/décor is a freq recurring exp & soley 4 appeal
Umbrella liability insurance protects the insured against: - Answer✔Liability costs that are in
excess of the basic liability policy
The principal record of a property's income is the: - Answer✔Rent roll
1|Page
