The Sequence of Adjustments to the Transaction Price of a Comparable

question 18

Multiple Choice

The sequence of adjustments to the transaction price of a comparable property would make no difference if all adjustments were dollar adjustments. However, if percentage adjustments are involved then the sequence does matter. In making adjustments to a comparable property to arrive at a final adjusted sales price, the proper sequence for the following adjustments would be:

• A) Financing terms, market conditions, location.
• B) Location, market conditions, financing terms.
• C) Market conditions, location, financing terms.
• D) Location, financing terms, market conditions.

---

Definitions:

Negative Cash Flow

A situation where a company's outflows of cash exceed its inflows over a given period, indicating potential financial trouble.

Cash Turnover Ratio

A financial metric that measures how efficiently a company generates sales from its cash on hand.

Profit

The financial gain realized when the revenue from business operations and sales exceeds the expenses, taxes, and costs of producing and selling goods or services.

In-The-Black

A financial term indicating that a business is making a profit, as opposed to being "in the red" which means it is incurring losses.