Unit 17 Exam: Florida Real Estate Course Flashcards

Unit 17 Exam: Florida Real Estate Course Flashcards

An advantage of real estate as an investment is the leverage of borrowed money.The cost to duplicate the business structure being appraised having the same use but differing physically somewhat is called Replacement cost Intangible assets of a business does NOT include inventory The buyer should sign which type of agreement before releasing financial information concerning a business?Confidentiality agreement All the resources of a business, including tangibles and intangibles, are called the Assets Which financial report indicates the results of business operations over a specific period of time?Income Statement Which type of risk is also called inflation risk? Purchasing-Power Risk Which accounting term refers to the total amount of money generated from an investment after the expenses are paid?Cash Flow An advantage of real estate investment trusts is That it offers diversification A case in which the interest paid for borrowed funds is more than the overall rate of return to an investor is an example of Negative Leverage The market value of an apartment building is $475,900.The investor has leveraged $380,720. What is the investor's equity in the property?

$95,180

The value of an established business property, compared with the value of just the physical assets of a business that is NOT yet established, is called going-concern value