CCIM 101 - Financial Analysis Questions with Complete Solutions What are the four basic components of NOI? - Correct Answers ✅1 - 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 Answers ✅Lease analysis PRI equals NOI in what property/tenant scenario? - Correct Answers ✅If the property has one tenant with a long-term absolute NNN lease.[XXXX] is PRI minus vacancy and collection losses. - Correct Answers ✅ERI (Effective Rental Income) Name some items which are EXCLUDED from Operating Expenses. - Correct Answers ✅Interest and principal on debt on the property Depreciation (cost recovery) Capital Expenditures Income Taxes Reserves for Replacement Tenant Improvements 1 / 2
CCIM 101 - Financial Analysis Questions with Complete Solutions
True or False: Depreciation is included in Operating Expenses.
- Correct Answers ✅False
True of False: Principal and interest on debt financing is
included in Operating Expenses - Correct Answers ✅False.This is an expense of ownership, not an operating expense.
True or False: Capital Expenditures are included in Operating
Expenses. - Correct Answers ✅False. They are written off over a period of years.
True of False: Income Taxes are included in Operating
Expenses - Correct Answers ✅False
True of False: Reserves for Replacement are included in
Operating Expenses - Correct Answers ✅False
True of False: Tenant Improvements (TI) are included in
Operating Expenses - Correct Answers ✅False
True of False: Repairs and Maintenance are included in
Operating Expenses - Correct Answers ✅True
True of False: Property insurance is included in Operating
Expenses - Correct Answers ✅True
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