.png){kind=logo}
- | Page
CCIM 101 - FINANCIAL ANALYSIS
UPDATED ACTUAL EXAM WITH CORRECT
SOLUTIONS.
What are the four basic components of NOI? - correct answer-
- - Potential rental income (PRI)
- - Vacancy and credit losses
- - Other income
- - Operating expenses
[XXXX] is used to determine a property's PRI (Potential Rental Income.) - correct answer- Lease analysis
PRI equals NOI in what property/tenant scenario? - correct answer- If the property has one tenant with a long-term absolute NNN lease.
[XXXX] is PRI minus vacancy and collection losses. - correct answer- ERI (Effective Rental Income)
- / 2
- | Page
Name some items which are EXCLUDED from Operating Expenses. - correct 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.
- correct answer- False
True of False: Principal and interest on debt financing is
included in Operating Expenses - correct answer- False. This is an expense of ownership, not an operating expense.
True or False: Capital Expenditures are included in Operating
Expenses. - correct answer- False. They are written off over a period of years.
True of False: Income Taxes are included in Operating
Expenses - correct answer- False
- / 2
.png)