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B&A Practice Exam > Exam > Flashcards

Exam Flashcards

1
Q

Compared to accounting, booking does not concern itself with ____ financial data:

a. classifying
b. identifying
c. recording
d. interpreting

A

d. interpreting

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2
Q

____ accounting cycle, includes the functions required to lease the office space to tenants for cash:

a. exchange
b. expenditure
c. receipts
d. revenue

A

d. revenue

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3
Q

The fundamental accounting equation is?

A

Assets = Liabilities + Owner’s Equity

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4
Q

____ is the common set of accounting principles, standards and procedures that companies use to record accounting data and compile their financial records.

A

GAAP

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5
Q

_____ accounting, is the method that records revenues and expenditures related tot he period for which they are applicable, whether or not cash has been transferred.

a. cash method
b. accrual basis
c. small business
d. large enterprise

A

b. accrual basis

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6
Q

____ allow for tighter controls over approvals, tracking purchases in chronological order, and providing safeguards against unauthorized use of company funds

A

Purchase Orders

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7
Q

A lease ____ is the most frequently retrieved document in a tenant file because it contains the core information about the lease.

a. abstract
b. addendum
c. code
d. propectus

A

a. abstract

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8
Q

A ____ shows the physical property and its space availability,

a. customer profile
b. delinquency report
d. stepped rent report
d. vacancy report

A

d. vacancy report

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9
Q

The purpose of a lease is to:

a. make money for the landlord
b. save money for the tenant
c. protect the interests of both the landlord and tenant
d. eliminate the need for lawsuits

A

c. protect the interests of both the landlord and the tenant

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10
Q

A(n) ____ lease is when rental payment is the base rent paid to the landlord, which includes property operating expenses incurred by the landlord; TT pays separately for the insurance and property taxes.

A

double-net

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11
Q

According to GAAP, base rent amounts are usually shown as the total term for the entire lease and often also the:

A

exact amount owed each month and/or year

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12
Q

____ is the specific type of rent that provides a return on invested capital and includes scheduled rent increases.

a) plain
b) base
c) simplified
d) standard

A

b) base

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13
Q

Among common billable expenses, these charges (additional rent: landscaping, parking and exterior lighting) typically fall into the category or:

a) real property taxes
b) operating expenses
c) common area maintenance charges
c) electricity

A

c) common area maintenance charges

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14
Q

When ID an expenditure as a capital item, the expenditure ___ be included in the escalatable cost pool. As such, tenant ____ be charged for the costs incurred through payment for capital expenses

a) can;can
b) can; cannot
c) cannot; can
d) cannot; cannot

A

d) cannot; cannot

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15
Q

Maximizing profit, a certain way to receive the value of a dollar of rent adjusted for inflation is to ensure leases have a provision to annually increase base rent based on increases in the:

a) GDP
b) GNP
c) CPI
d) WPI

A

c) CPI

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16
Q

GAAP states that rent and other charges to tenants begin:

a) the first day of every month
b) the last day of every month
c) upon occupancy by the tenant
d) upon vacancy by the previous tenant

A

c) upon occupancy by the tenant

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17
Q

In a ___ market, when rents are ___ than average, tenants often agree to stepped rent increases throughout their lease term.

a) soft; lower
b) soft; higher
c) tight; lower
d) tight; higher

A

a) soft; lower

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18
Q

A tenant is occupying expired space in holdover rent: If the holdover rent rate is 1.35 times the monthly base rent (of $20,000), the tenant’ monthly holdover rent would be:

a) $14,815
b) $20,000
c) $27,000
d) $30,769

A

c) $27,000

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19
Q

According to GAAP, landlords are ___ tenant with reminder notices for rent payments

a) legally obligated to provide
b) advised to provide
c) discouraged from providing
d) barred from providing

A

b) advised to provide

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20
Q

___ budgeting, wherein different parties takes responsibility for different sections of the budget for the property

a) compartmentalized
b) distributed
c) responsibility
d) section

A

c) responsibility

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21
Q

In budgeting the base rent for tenants of a strip mall, staff will start by:

a) quantifying leasing efforts needed to market vacant space
b) identifying a success ration in obtaining renewals for leases expiring during the year
c) increasing base rents for future stepped rent increases
d) scheduling base rent monthly for each existing tenant

A

d) scheduling base rents monthly for each existing tenant

22
Q

No charges can be assessed against tenants in spaces that are vacant and some tenants have expense caps written into their leases. These facts help explain ___, which is the difference between recoverable operating expenses and the actual operating expenses:

a) lagging
b) regression
c) slippage
d) underwritting

A

c) slippage

23
Q

For budgeting other income amounts (ie. rooftop solar panels/storage) it is best advised to use a(n) ___ schedule for these additional rent charges:

a) monthly tenant -by-tenant
b) annual tenant-by-tenant
c) monthly property-wide
d) annual property-wide

A

a) monthly tenant-by-tenant

24
Q

When comparing service vendors, standard industry practice compares ___ rates while ___ an emplhaseis on the grammer in vendor proposals.

a) flat; places
b) flat; does not place
c) hourly; places
d) hourly; does not place

A

c) hourly; places

25
Q

As a rule, the PM should view the POs forwarded to vendors as ___ requests for goods or services:

a) basic
b) formal
c) informal
d) tenantive

A

b) formal

26
Q

The first step to code invoices is:

a) review the budget to determine if the expense items were anticipated
b) check the log to see when the particular invoices were received
c) sort the invoices into a General Building account
d) hold theinoices until the first business day of the following month

A

a) review the budget to determine if the expense items were anticipated

27
Q

What type of invoices should be expected in an organizations computer holding file?

a) paid
b) unpaids
c) operational
d) capital

A

b) unpaids

28
Q

Reviewing for cost control, the PM categorize mortgage payment and property insurance as ___ costs.

a) fixed
b) semi-fixed
c) variable
d) semi-variable

A

b) semi-fixed

29
Q

Prior to purchasing a property, the buyer projected the expenses of a property over their anticipated holding period. This projection is known as a:

a) pro ana
b) pro bono
c) pro capite
d) pro forma

A

d) pro forma

30
Q

As a PM, which type of PO copy would be sent to the PM once it ia approved?

a) the control copy
b) the receiving copy
c) a numerically filed copy
d) an alphabetically filed copy

A

c) a numerically filed copy

31
Q

For accounting purposes, costs are segregated. The major reasons for setting up various cost accounts are to establish a basis for pricing and to enable management to ___ cost excesses.

a) amortize
b) customie
c) localize
d) synthesize

A

c) localize

32
Q

The budget drawn up is typical in that its time frame corresponds with the reporting frequency required by:

a) GAAP
b) the owner
c) the state
d) the federal government

A

b) the owner

33
Q

In determining next years property taxes, the mill rate is multiplied by the assessed value of the property. The monies derived from this formulation typically go on to fund suh purposes s:

a) property maintenance
b) public health and safety
c) capital improvement projects
d) employee retirement accounts

A

b) public health and safety

34
Q

Building mgmt is granted one right to appeal a real estate tax assessment:

a) per year
b) every 10 years
c) every 20 years
d) for the life of the building

A

a) per year

35
Q

Aiming to keeping leasing costs down in a soft market means that ___ advertising will be required. Additionally, there is a large supply of vacant space available in the market similar to the property, which means that the advertising effort will most likely be of ___ duration.

a) more; longer
b) more; shorter
c) less; longer
d) less; shorter

A

a) more; longer

36
Q

In order to determine the capitalization rate for a proposed project, the PM should divide the ___ by the value of the property

a) taxable gain
b) net present value
c) replacement reserve
d) net operating income

A

d) net operating income

37
Q

A vendor’s records for a property should contain a record of each ___ for the property during the month.

a) cash receipt and cash disbursement
b) cash receipt and tax abatement
c) cash disbursement and tax assessment
d) tax abatement and tax assessment

A

a) cash receipt and cash disbursement

38
Q

A GL prepared correctly shoudl find cash disbursements transferred to the expense account as ___, with total disbursements transferred to the cash account as ___

a) debits; a debit
b) debits; a credit
c) credits; a debit
d) credits; a credit

A

b) debits; a credit

39
Q

In review, an income statement shows income and expense activity:

a) ordered alphabetically
b) ordered from least to greated
c) coded to the approprite tax ID number
d) coded to the appropriate account

A

d) coded to the appropriate account

40
Q

During the income accrual process, the revenue should be recorded, then offset by a(n) ___ reflecting the amount of income deemed uncollectible

A

expense

41
Q

Expenses that apply to future periods will often be paid in one lump sum. Each of the following is a prepaid expense except for:

a) employee severence
b) property taxes
c) building maintenance
d) long-term equipment service and maintenance records

A

a) employee severence

42
Q

One way of making the proposed Capital projects more affordable is to take advantage of depreciation. While Canadian depreciation regulations implement the declining balance method, at present, the US is goverend by legislation focused on the modified accelerated cost recovery system, which has increase the useful life of commercial, nonresidential, real property to ___ years:

a) 20
b) 25
c) 34
d) 39

A

d) 39

43
Q

The case basis income statement and the balance sheet all appear to be complete and accurate upon review. This means that transfers between the two statement are recorded as a(n_:

a) plus and a minus
b) debit and a credit
c) input and an output
d) positie and a negative

A

b) debit and a credit

44
Q

Using the EER to compare the actual performance of the mall against similar commercial retail building in the selected region, the true avg as presented in the report measures the cost or income per square foot of the property by re4ferring ___ of building contributing data.

a) only to the size
b) only to the number
c) to both the number abnd size
d) neither to the number nor size

A

d) neither to the number nor size

45
Q

The midpoint of a set of data being analyzed is the:

a) mean
b) median
c) mode
d) range

A

b) median

46
Q

EER has limitation, for exammple, data in the EER may be biased toward ___ properties:

a) older
b) newer
c) larger
d) smaller

A

a) older

47
Q

Which of the following is not a mean to find out a prospective tenants’ earning power?

a) return on equity
b) price of earnings
c) earnings per share
d) common-sized comparative statements

A

b) price of earnings

48
Q

What factor may affect adjustmeents to the GAAP current ratio (ie. relation of current assets to current liabilities); 2 to 1 being a minimally acceptable measure?

a) the company’s CEP
b) the composition of the company’s current assets
c) the company’s reputation in the industry
d) the company’s commitment to energy-saving initiatives

A

b) the composition of the company’s current assets

49
Q

In reviewing tenant’s financial statements, the accountants add back interest exense to income before taxes to determibne the amount of income available to pay debt service. This income is then divided by the debt service amount to determin the number of times debt service can be paid. The number of times debt service can be paid from income is called the:

a) debt service ratio
b) deb service constant
c) net liability ratio
d) net liability constant

A

a) debt service ratio

50
Q

Following GAAP, the PM ensures theat the financial statements for the property are stated in ___, the most reasonable form of a stable monetary unit.

a) ratios
b) euros
c) dollars
d) percentages

A

c) dollars

B&A Practice Exam (1 decks)

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