Question 1 2 pts Which of the following statements best describes capital accumulation? Capital accumulation totals the present values of a series of cash flows to a single sum. Capital accumulation is a process of adjusting an investment's cash flows so that the growth in capital of one investment can be compared to the growth in capital of another investment Capital accumulation is a method for determining investment value; it is the ratio of net operating income divided by the value or price of a property. Capital accumulation measures the percentage rate earned on each dollar invested for each period it is invested. Capital accumulation is a method for measuring the growth in capital of an investment by compounding the investment value of a property at an appropriate rate. Question 2 2 pts The capitalization rate is calculated as follows: Potential rental income divided by net operating income Fair market value divided by potential rental income Scheduled rents divided by price Net operating income divided by expenses Net operating income divided by price Question 3 2 pts Adjusted basis of improved real property is: The amount of money paid for the property when acquired The original cost less cost-recovery taken The difference between the loan of record and the property's fair market value The original cost plus loan payment less cost-recovery taken The original cost plus capital improvements, less cost-recovery allowed, less any basis in partial sales Question 1 2 pts Which of the following statements best describes capital accumulation? Capital accumulation totals the present values of a series of cash flows to a single sum. Capital accumulation is a process of adjusting an investment's cash flows so that the growth in capital of one investment can be compared to the growth in capital of another investment Capital accumulation is a method for determining investment value; it is the ratio of net operating income divided by the value or price of a property. Capital accumulation measures the percentage rate earned on each dollar invested for each period it is invested. Capital accumulation is a method for measuring the growth in capital of an investment by compounding the investment value of a property at an appropriate rate. Question 2 2 pts The capitalization rate is calculated as follows: Potential rental income divided by net operating income Fair market value divided by potential rental income Scheduled rents divided by price Net operating income divided by expenses Net operating income divided by price Question 3 2 pts Adjusted basis of improved real property is: The amount of money paid for the property when acquired The original cost less cost-recovery taken The difference between the loan of record and the property's fair market value The original cost plus loan payment less cost-recovery taken The original cost plus capital improvements, less cost-recovery allowed, less any basis in partial sales
