Which of the following must be deducted from gross collectible income to arrive at net
Back rent payments
Fixed expenses refer to expenses that
fluctuate every year.
are put aside for improvements.
do not fluctuate with the amount of occupancy.
increase or decrease with the amount of occupancy.
When both fixed and variable expenses are deducted from gross collectible income, the result
net operating income.
effective gross income.
potential gross income.
Which portion of debt service should be considered an expense on the profit and loss
Principal and interest
Interest portion only
Principal portion only
Neither principal nor interest is considered on the profit and loss statement
All of the following are reasons to study the operating budget EXCEPT
gives the owner an idea of the cash flow.
gives the manager a guide for future performance.
is a measure of past performance.