The Starting Point in Calculating Net Operating Income Is the Total

question 25

Multiple Choice

The starting point in calculating net operating income is the total annual income the property would produce assuming 100 percent occupancy and no collection losses. This is commonly referred to as:

• A) effective Gross Income
• B) potential Gross Income
• C) operating expenses
• D) capital expenditures

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Definitions:

Convert

To change something into a different form or properties, often used in context with currency, securities, or data transformation.