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
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
