Which of the Following Expenses Would NOT Be Included in an Operating

question 20

Multiple Choice

Which of the following expenses would NOT be included in an operating statement used to calculate net operating income in the income approach to value?

• A)Reserves for replacement
• B)Maintenance
• C)Real estate taxes
• D)Capital additions

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Definitions:

Industrial Revolution

A period of major industrialization from the late 18th to early 19th century that transformed primarily agrarian, rural societies in Europe and America into industrialized, urban ones.

Technological Trade Secrets

Any practice, formula, design, instrument, pattern, or information which is not generally known or reasonably ascertainable, used by a business to gain a competitive advantage over competitors or customers.

Public Improvements

Projects and initiatives undertaken by government entities aimed at enhancing community infrastructure, services, and overall quality of life.

Turnpikes

Roads on which a fee, or toll, is charged for use, historically significant in the development of transportation networks.