Module 9 - Financial Sheet Test

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  • 1/12 Questions

    What expense percentage should Self Storage be calculated at? Between which two percentages.

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About This Quiz

Module 9 - Financial Sheet Test assesses knowledge on utilizing previous year's data for insurance and taxes, understanding expense percentages across various property types, and the importance of monthly P&L breakdowns to identify trends.

Property Management Quizzes & Trivia

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  • 2. 

    What expense percentage should Apartments be calculated at?  Between which two percentages.

    Explanation
    Apartments should be calculated at an expense percentage between 50-70%. This range is represented by all the given options: 50-70%, 50 to 70, 50%-70%, 50-70, and 50 - 70%.

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  • 3. 

    What expense percentage should Assisted Living Facility be calculated at?  Between which two percentages.

    Explanation
    The correct answer is 70-75%, 70-75, 70%-75%, 70 to 75, 70 - 75%.

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  • 4. 

    What expense percentage should Mobile Home Parks be calculated at?  Between which two percentages.

    Explanation
    The expense percentage for Mobile Home Parks should be calculated between 35-40%. This means that the expenses incurred by Mobile Home Parks should ideally be within this range of percentages.

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  • 5. 

    When filling out the financial sheet, you may have to customize the income and expense fields (boxes) to be congruent with P&L for that property.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    When filling out the financial sheet, it is necessary to customize the income and expense fields to be congruent with the Profit and Loss (P&L) statement for that specific property. This means that the income and expense categories on the financial sheet should match the corresponding categories on the P&L statement in order to accurately track the financial performance of the property.

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  • 6. 

    What cap rate should a property be at in order to submit it? (Yes there are some exceptions on a case by case sinario.)

    Correct Answer
    8 cap
    8%
    8 or above
    8+ cap
    8% cap
    Explanation
    The correct answer for this question is "8 cap, 8%, 8 or above, 8+ cap, 8% cap". This answer suggests that the property should have a cap rate of 8 or above in order to be submitted. The cap rate is a measure of the property's profitability and is calculated by dividing the net operating income by the property's value. A higher cap rate indicates a higher return on investment, so a cap rate of 8 or above would be desirable for submission.

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  • 7. 

    What is a good cash on cash return percentage? Between what range.

    Correct Answer
    10 to 15
    10-15%
    10-15
    10 - 15%
    10%-15%
    Explanation
    A good cash on cash return percentage is typically between 10% to 15%. This means that for every dollar invested, the investor can expect to receive a return of 10% to 15%. This range is considered favorable as it indicates a relatively high return on investment, which is desirable for investors.

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  • 8. 

    What column on the financial sheet should administrative/payroll go under? (View the financial sheet)

    Correct Answer
    Salaries & Benefits
    Salaries and Benefits
    salaries & benefits
    salaries and benefits
    Explanation
    The administrative/payroll expenses should go under the "Salaries & Benefits" column on the financial sheet. This column is specifically designated for recording the expenses related to employee salaries and benefits, which includes the administrative and payroll costs.

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  • 9. 

    It is fine to use the broker brochure financials for the P&Ls.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Using the broker brochure financials for the P&Ls is not fine. This suggests that there may be some issues or inaccuracies with the information provided in the broker brochure financials, making them unreliable or unsuitable for use in analyzing the P&Ls. It is important to use accurate and trustworthy financial information when analyzing P&Ls to make informed decisions.

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  • 10. 

    If you don't have the insurance or tax amounts for the current year it is fine to use the amount from the previous year.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement suggests that if the insurance or tax amounts for the current year are not available, it is acceptable to use the amounts from the previous year. This implies that there is flexibility in using previous year's data as a substitute when the current year's data is missing. Therefore, the correct answer is True.

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  • 11. 

    What is the main reason the expense percentage for apartments would be at 70%?

    • When the complex is paying for the utilities.

    • When the owner is putting his personal expenses into the business expenses.

    • The owner is not managing the property finances correctly.

    Correct Answer
    A. When the complex is paying for the utilities.
    Explanation
    The main reason the expense percentage for apartments would be at 70% is when the complex is paying for the utilities. This means that a significant portion of the expenses is being used to cover the costs of utilities such as electricity, water, and gas. This can result in a higher overall expense percentage for the apartments as compared to other factors such as the owner's personal expenses or mismanagement of property finances.

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  • 12. 

    Why is it important to get the P&L broken down by month? (The answer is more then one.)

    • To see trends.

    • To understand the history behind the asset.

    • To see what expenses are going to apply to the new owner.

    Correct Answer(s)
    A. To see trends.
    A. To understand the history behind the asset.
    A. To see what expenses are going to apply to the new owner.
    Explanation
    It is important to get the P&L broken down by month in order to see trends and understand the history behind the asset. By analyzing the P&L on a monthly basis, one can identify patterns and fluctuations in revenue and expenses, which can help in making informed decisions and planning for the future. Additionally, breaking down the P&L by month allows the new owner to determine what expenses they will be responsible for, providing a clearer picture of the financial obligations associated with the asset.

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  • Current Version
  • Mar 17, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Dec 29, 2010
    Quiz Created by
    Keepitsimple
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