Income After Deducting Loss of Rents Due to Vacancy and Nonpayment

question 14

Multiple Choice

Income after deducting loss of rents due to vacancy and nonpayment of rents,as well as any concessions,is referred to as:

• A)Potential gross income
• B)Effective gross income
• C)Net operating income
• D)Before-tax cash flow

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Definitions:

Accrued Interest

Interest that has been earned but not yet paid or received.

Accrued Interest

Accrued interest refers to the interest that has accumulated on a bond or loan since the last interest payment was made.

360-Day Year

A financial concept that simplifies the calculation of interest over periods when the actual number of days in a year is considered to be 360.

Commission

A fee or percentage of a transaction paid to an agent or employee for facilitating or completing a sale.