Study with the several resources on Docsity
Earn points by helping other students or get them with a premium plan
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community for help and clear up your study doubts
Discover the best universities in your country according to Docsity users
Free resources
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
Argus Certification Exam Study Guide | Questions with 100% Correct Answers | Verified | Latest Update | 2024 | GRADED A+
Typology: Exams
1 / 13
True or False: ARGUS Enterprise merges three industry standard solutions: ARGUS Valuation- DCF, ARGUS Asset Management, and ARGUS Valuation-Capitalisation - ANSWER True In ARGUS Enterprise you can utilize shortcut keyboard commands to navigate within certain sections of the program. - ANSWER True In AE, a user can add over 100 properties into a portfolio. - ANSWER True Which is a benefit to utilizing a Chart of Accounts? a) Easier to track Revenues/Expenses b) Standardizes portfolio for names of all Expenses/Revenues c) Helps with accounting system integration d) All of the above - ANSWER All of the above In ARGUS Enterprise, you can only assign one Chart of Accounts to a portfolio. - ANSWER True The Discard Changes option will discard only the last change you have made to the property record. - ANSWER False Only users with appropriate permissions can access all of the features in the Control Panel. - ANSWER True To lock down a specific property and restrict who can edit it, click the _____________ button located in the ARGUS Enterprise Ribbon bar. - ANSWER Check Out Property
True or False: You can import and/or export v15 DCF files from ARGUS Enterprise. - ANSWER True The Expense Inflation Rate will be the default percentage for: a) Operating Expenses b) Non-Operating Expenses c) Capital Expenses d) All of the above - ANSWER All of the above True or False: Every inflation category must be given a number or it will default to the General Inflation Rate. - ANSWER False Assuming a 60% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis (revenue is $13,000 with fixed percentage of 0%). - ANSWER $7,800 (.6*13000) Assuming a 0% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis. - ANSWER $ Assuming 100% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis. - ANSWER $13, What is the Capital Expense amount that will appear on the Cash Flow? - ANSWER $63,654??? Free Rent, by default, kick in at the beginning of the _________. - ANSWER Tenant's Lease Start Date The default recovery structure in ARGUS enterprise is __________. - ANSWER Net The Available Date column in the Tenants - Rent Roll, represents the start of the tenant's lease. - ANSWER False. The Start Date represents the start of the tenants lease.
True or False: By default, Tenant Improvements and Leasing Commissions are paid at the start of the tenant's lease. - ANSWER True True or False: The Upon Expiration field within the Market Leasing profile allows users to select a different Market Leasing profile to be used after the first Market Leasing term is over. - ANSWER True Contractual Renewal: a) Utilizes the Renew Market Leasing profile terms b) Utilizes the New Market Leasing profile terms c) Inserts a new contract lease into the Rent Roll d) None of the above - ANSWER c) Inserts a new contract lease The inflation rates are displayed on which report? - ANSWER Property Summary Which report displays New Market, Renewal Market, and Weighted Average results? - ANSWER Assumptions Report When your resale calculation is set to CAP NOI (12 months after sale), which year's NOI will be used when analyzing a 6-year analysis? - ANSWER The 7th years NOI If 12% is a desired return, enter 12% in the ________________ parent tab. - ANSWER Valuation What will LB Corporation pay for reimbursements in 2016 if 2016 is the base year in a base year stop structure? - ANSWER $ What will LB Corporation pay for reimbursements in 2017? - ANSWER The amount of 2017 total operating expenses over 2016 total operating expenses What will LB Corporation pay for reimbursements in 2018? - ANSWER The amount of 2018 total operating expenses over 2016 total operating expenses
If a tenant's space is available, but sitting vacant before they move in and you want to show that vacancy on reports, what do you need to enter in for the Lease dates? - ANSWER The Available Date needs to be when the space is actually available and the Start Date needs to be when the tenant's lease begins. True or False: Step Rent increases can be applied in the Step Rent field or in the Base Rent varies window. - ANSWER True Assuming a sale date of December 2020, what will be the net proceeds from sale if we have a resale calculation that capitalizes the NOI 12 months after sale? - ANSWER (2021 NOI / 10% Cap Rate)(1.0 - 3% adjustment) Assuming a sale date of December 2020, what will be the net proceeds from sale if we have a resale calculation that capitalises the NOI of the sale year? - ANSWER (202 NOI / 10% Cap Rate)(1.0 - 3% adjustment) When using an Available date that is before the Start date, the loss in potential rent (Base Rental Revenue) can be shown on which report? - ANSWER Lease Audit ______________________ is used in retail properties where tenants are expected to pay a percentage of their sales to the property owner. - ANSWER Percentage Rent What is the default calculation formula for Chargeable Sales? - ANSWER Sales Volume - Breakpoint Calculate the General Vacancy Loss using the following assumptions:
After changing the modeling policy for Gross Ups, any Recovery Structure already created will default to the Gross Up percent in the Modeling Policies window. - ANSWER False The default formula for Leasing Commissions is: - ANSWER Base Rent + Step Rent + CPI - Free Rent To indicate that an expense should not be included in the cash flow projection nor used in the calculation of the NOI, select ________________ - ANSWER Reference Only True or False: The percentage of the expense that is eligible to be recovered can be altered for the entire property within the Expense tab - ANSWER True What is the default formula for Free Rent? - ANSWER Base Rent + Fixed Steps + CPI True or False: Months Vacant Overrides will only affect the first rollover and there will be no blending based upon the renewal probability. - ANSWER True True or False: The Batch Update allows a user to model several changes simultaneously instead of performing each individual adjustment. - ANSWER True True or False: When creating a sensitivity scenario, changes to individual properties may be made at the top of the screen. - ANSWER False Different levels of detail can be set for the Audit Log in which Portfolio Application tab? - ANSWER Portfolio Details To change the report interval setting, click the _____________ button. - ANSWER Report Options Which report within Portfolio Level Reports will show individual property information that makes up the selected cash flow totals? - ANSWER Cash Flow Detail All of the following are options for exporting Portfolio Level Reporting except:
a) Excel b) Tiff c) PDF d) HTML - ANSWER d) HTML Task Pane provides a number of shortcuts and convenient functions, which include: - ANSWER Getting Started, ARGUS Alerts, ARGUS Valuation - DCF Wizard, and Shared Workspace Getting Started (Task Pane) - 4 - ANSWER Create new files, open recent files, connect to ARGUS website, and access a shared workplace online ARGUS Alerts - ANSWER Login to the ARGUS website to receive instant alerts, news, and other information Property Library - ANSWER Window allows you to view a list of property files in the active directory when other ARGUS Valuation - DCF property files are open. Toolbar (on the Property Library window) - ANSWER Allows you to navigate to directories and to perform actions on one or multiple ARGUS files without opening the files themselves Items of Property Library Toolbar (5) - ANSWER Email a file to someone, report on a batch of ARGUS files, create a portfolio, compare two or more files, add selected files to the Tenant Registry When creating a ARGUS file it is best to start with... - ANSWER the Property Description Inputs of Property Description - ANSWER Basic property information - timing area measures, and inflation What is the first window to appear when creating a new file? - ANSWER Property Description window Where is the password button found? - ANSWER Property Description window
Property Type can or cannot be changed once selected? - ANSWER CANNOT! Property Timing tab is found where? - ANSWER Property Description window Property Timing tab includes: - ANSWER Analysis start date, Reporting Start Date, and # of years to Report or End Date Analysis Start Date - ANSWER Sets the date at which ARGUS Valuation - DCF calculations will occur. For example, month 6 is relative to the analysis start date (not Reporting Start Date) All entries that begin with a "relative" start date will be relative to which date? - ANSWER Analysis Start Date Reporting Start Date - ANSWER - Sets the date at which reports will begin
If an inflation field is left empty... - ANSWER it will default to the General Inflation Rate Why is inflation in year 1 never available? - ANSWER Because it does not occur until the beginning of the 2nd year Inflation input into Year 2 will apply to which years numbers? - ANSWER Year 1 When entering the Property Size, enter the (blank) area - ANSWER net rentable Default inflation is? - ANSWER 0% unless changed The main screen that displays once a file has been created or opened - ANSWER Executive Dashboard Executive Dashboard - ANSWER Basic summary of all the Year 1 information in an ARGUS Valuation - DCF file In the Executive Dashboard, where are the links to the input screens found? - ANSWER Icons on the tool bar as well as the links in grey type The Globe and Magnifying Glass icon - ANSWER Is a link to view the property in Google Maps Where are the Export, Print, Calculate, and Pause button located? - ANSWER Bottom right hand corner Where is the import Graphic icon located? - ANSWER Upper left corner of the executive dashboard The Import Graphics icon - ANSWER Import images and will be included on each new property created with that template To create or modify a dashboard select the (blank) - ANSWER Dashboard template icon
Where is the Dashboard Template icon located? - ANSWER The toolbar of the executive dashboard What are the (blank) per-formatted Dashboard templates? - 6 - ANSWER Valuation Summary, Classic, Investment, Appraisal,Lending, and Navigation Miscellaneous Revenues - ANSWER Are property-level income items not paid by the tenants. Any operating revenue not paid by the tenants can be entered in this screen. What are examples of miscellaneous revenues? - ANSWER Vending machines or rental of roof antennas What are the possible misc. revenues that can be selected? (5) - ANSWER % of EGR, $ Amount, $/Area, % of Constant, % of Line % of Line - ANSWER Misc revenue; the allows the revenue to be based on a percentage of other items in the property % of EGR - ANSWER Misc. Revenue; percentage of the Effective Gross Income $ Amount - ANSWER Misc. Revenue; interpreted as a full payment amount $/Area - ANSWER Misc. Revenue; multiplied by the area measure selected in the area column % of Constant - ANSWER Misc Revenue; interpreted as a percentage of the Amount column. If the amount of revenue is set to (blank), the Area/Constant column will be unavailable - ANSWER $ Amount, % of EGR, % of line Rebursable Expenses - ANSWER Property expenses the landlord will recover. All entires will be available for reimbursement by the tenants.
Common Reimburment Expenses - ANSWER CAM, Taxes, Insurance, Repairs & Maintence Reimbursable Expenses may be entered as (7) - ANSWER Simple Amount, Detailed Amount, % of EGR, $/Area, % of Constant, % of Line, % of Fixed column - ANSWER Determines the amount of the expense ( or revenue) that is based on occupancy Capital Expenditures - ANSWER Not considered part of a property's NOI and appear below the income line on the CF in the Capital Costs section Typical CapEx are: - ANSWER Stuctural or Capital reserves, building repairs, or improvements (anything to improve te property value that is not routine) Property Level reports can be accessed in (2) ways - ANSWER Property level Reports icon in the toolbar or Reports Menu - Property Level selection Property Level Reports can be viewed - ANSWER Annually, Monthly, Quarterly, Semi- Annually Ways to access the Rent Roll - ANSWER From tenant menu --> select Rent Roll, or clock the Rent Roll icon on the toolbar Default Lease Type choices are: - ANSWER Office, Retail, Industrial, Pad Site and Storage In the Rent Roll, enter the Base/Min Rent field as (3) - ANSWER Amount per area, total amount for a given period, or percent of market rent What are three ways a tenant can reimburse expenses? - ANSWER None, Net, or Base Stop Net reimbursements - ANSWER Triple net leases - tenant will pay their natural pro-rata share of all Reimbursable Expenses
Base Stop - ANSWER Typically 1 year and in Office spaces What kind of reimbursement method is used for gross leases? - ANSWER Base Stop True of False: An ARGUS Valuation - DCF cannot calculate a base year prior to the analysis start date - ANSWER True Rent Abatement - ANSWER Number of months of free rent for the current lease STARTED AT THE BEGINNING OF THE LEASE TERM Leasing Costs - ANSWER Consist of Tenant Improvements and Leasing Commissions Tenant Improvement default unit is... - ANSWER $/SqFt Leasing Commissions default unit is... - ANSWER Percentage of a tenant's total rent Market Leasing Assumptions are used for what purpose? - ANSWER To control what happens to the contract lease after it expires and goes to market Market Leasing Assumptions can be accessed from (2) - ANSWER Executive Dashboard(Market drop down menu, market leasing assumptions) or from the Rent Roll Upon Expiration drop-down menu - ANSWER Control how the program will blend the MLA numbers Market (Upon Expiration selection) - ANSWER Weighted average of new and renewal numbers Formula for the Market Rate Upon Expiration calculations - ANSWER [Renewal Mkt% x Renewal Mkt Numbers] + [New Mkt% + new Mkt Numbers] = Market Rate Possible Options of the Upon Expiration drop-down menu (6) - ANSWER Market, Renew, Vacate, Option, ReAbsorb, Non-Contiguous
Yield Menu contains (4) - ANSWER Property Purchase Price, Property Resale calculation, Present Value Discount rate, and Debt Financing Once revenues, expenses, and costs have been entered the next step is... - ANSWER to enter the purchase price along with a resale calculation Direct Capitalization is useful for brokers because - ANSWER they typically determine the value of the property using the "going in" cap rate The Capitalization Period - ANSWER is a 12-month period of income into which the cap rate is divided Direct Cap Capitalization Options (3) - ANSWER Year One, Year Starting in Month, First 12 months Capitalization Period: Year One - ANSWER Use the first calendar year of the analysis period Cap Period: Year Starting in Month x - ANSWER select a specific month within the 12 month period Cap Period: First 12 Months - ANSWER use the first 12 months of the analysis Difference between Cap Period Year One and First 12 Months - ANSWER Is when the first year of the analysis is less than 12 months (ex: 1/12 - 6/12) True of False: Extra months are always placed at the beginning of the analysis - ANSWER TRUE How would you blend the Direct Capitalization with the Unleveraged Present Value of the property? (ONLY ASIA) - ANSWER Select the Calculate a Blended Value (ONLY ASIA) Property Resale window - ANSWER Where resale assumptions are made
Ways to calculate the resale at the end of the analysis (3) - ANSWER Capitalize NOI, Apply Rate to following year income, Calculate Resale for All Years Capitalize NOI - ANSWER Divides the NOI in the final analysis year by the cap rate Gross Proceeds from Sale = (formula) - ANSWER NOI/Cap Rate Apply Rate to following year income (Property Resale) - ANSWER Resale proceeds will be calculated using the following year of the analysis Calculate Resale for All Years (Property Resale) - ANSWER Calculate and display proceeds for each analysis year (for reporting purposes) Where can you find the Cap Rate Matrix? - ANSWER Bottom right icon of the Property Resale screen Cap Rate Matrix - ANSWER Allows your to input a range of Cap Rates that will calculate a range of PVs in a Cap Rate Matrix Report Present Value Discounting - ANSWER Pg. 46 To access the Cap Rate Matrix Report - ANSWER Reports, Property Level..., Check Prospective Present Vale Options, Check Cap Rate Matrix Prospective Resale and IRR Summary Report - ANSWER Shows what we think we will get back and when Frequency of Reimbursable Expenses can be entered as (x) in the drop down menu - ANSWER Annually, Monthly, Quarterly Present Value Discounting - ANSWER target internal rate of return