What Is the Price-To-Rent Ratio for a Condominium That Rents

question 22

Multiple Choice

What is the price-to-rent ratio for a condominium that rents for $1,200 per month and has a market value of $279,000?

• A)3.9
• B)7.8
• C)232.5
• D)19.4

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Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and adjusted thereafter for the investor's share of the investee’s profits or losses.

Journal Entries

Records of financial transactions in the accounting system.

Impairment Loss

The amount by which the carrying amount of an asset exceeds its recoverable amount, leading to a decrease in the asset's value on the financial statements.

International Financial Reporting Standards

A set of global accounting standards developed by the International Accounting Standards Board, aiming to bring transparency, accountability, and efficiency to financial markets around the world.