Cash & Accrual Basis Accounting
Financial Reports
Accounting Month End (AME)
The FCRF
Reclasses & Invoice Processing
Financial Calculations
100
Erin is the Property Manager of ABC Apartments in Seattle, WA and her property uses Cash Basis accounting. Below is a list of recent orders she placed from HD Supply:
Invoice 1:
Amount: $200
Order Placed: 1/5/22
Order Received: 1/6/22
Check cut: 1/7/22
Invoice 2:
Amount: $250
Order Placed: 1/25/22
Order Received: 1/26/22
Check cut: 2/5/22
Invoice 3:
Amount: $300
Order Placed: 1/1/22
Order Received: 1/17/22
Check cut: 1/24/22
What is the total dollar amount that will appear on Erin's January financials, assuming the period closes on 1/25/22?
What is $500?
100
On which report can you find the market rent, potential rent, LTL/GTL, rental income and receipts current for all units at a property?
What is the gross potential rent (GPR) report?
100
When should pre-close be performed?
What is 1 week before closing?
100
On which tab would you enter actual invoice amounts and service periods to calculate the current period's accruals?
What is the utility accrual tab?
100
Given the above information, what reclass should most likely occur?
What is reclass $8,235.58 from GL 413085 (Parking) to GL 413075 (Garage)?
100
David rents apartment B101 for $2,540 per month. Prior rent for the same apartment was $2,175.
What was the trade out?
What is $365?
200
Kayla is the Property Manager of ABC Apartments in Edmonds, WA. Below is a list of recent orders she placed from HD Supply:
Invoice 1:
Amount: $200
Ordered on: 1/17/22
Order Received: 1/19/22
Invoice Entered into PayScan: 1/20/22
Check Cut: 1/31/22
Invoice 2:
Amount: $250
Ordered on: 1/20/22
Order Received: 1/26/22
Invoice Entered into PayScan: 1/26/22
Check cut: 2/5/22
Invoice 3:
Amount: $300
Ordered on: 1/25/22
Order Received: 1/27/22
Invoice Entered into PayScan: 2/26/22
Check cut: 2/27/22
What was the total accrued expense for January, assuming the financial period closes 1/24/22?
What is $450?
200
What report provides detailed GL activity for a given period and should be used when adding reclasses and accruals?
What is the general ledger?
200
How often should soft close be performed?
What is weekly?
200
On which tab would you enter the invoice information on for a product/service received, but not yet paid for?
What is the accrual tab?
200
What is the maximum dollar amount that a Property Manager can approve before an invoice goes to the next-level approver?
What is $5,000?
200
Julianne rents apartment C203 for $2,300 a month on a 12 month lease term. She gave the new tenant an upfront concession of 1 month free.
What is the effective rent?
What is $2,108?
300
Jamie adds a $1,200 accrual to his FCRF for his monthly landscaping services in May 2022.
What will the accrual automatically do in June 2022?
What is reverse?
300
What are the 4 main financial reports submitted as part of accounting month end (AME)?
Must correctly name all reports to receive points
What is the security deposit activity report, the rent roll, the aged receivables report, and the GPR report?
300
Which AME report must have RM/DM approval?
What is the FCRF?
300
On which tab should you list the HelpDesk ticket number on for any items sent in?
What is the pre-close review tab?
300
What are two reports/documents that should be used to determine what GL account an invoice should be coded to?
What is the budget comparison report and the property budget workbook?
300
Given the above information, what is the period's average physical occupancy?
What is 94.26%?
400
Assuming that the monthly contracted amount was reduced in June 2022, how much and for which months should be re-accrued for?
What is $2,500 for April 2022 and $2,500 for May 2022?
400
Which 2 columns on the GPR report should never have a $0 amount?
What is the market rent column and potential rent column?
400
What AME function should be performed if a tenant has an available prepay and a current balance owed?
What is apply prepays?
400
What are the most common JE description prefixes to use when entering reclasses and accruals?
What is RC and ACCR?
400
What is the #1 way to reduce the amount of reclasses needed in any given period?
What is using the correct GL account when processing invoices?
400
February's Total Revenue was $383,179.55 and the Total Operating Expenses were $144,264.32.
What is February's Net Operating Income (NOI)?
What is $238,915.23?
500
What is different about the dollar amount when accruing for income versus for expenses on the FCRF?
What is the sign is negative (-)?
500
On which 2 reports should there be no past/denied/canceled tenants with an amount on hand and/or a current balance?
What is the security deposit activity report and aged receivables report?
500
What report is used to tie-out the total unpaid charges from the aged receivables report?
What is the trial balance?
500
Your most recent trash bill was for $1,550 from April 15th to May 15th (31 days). You are accruing now through May 31st (16 days).
Using the utility accrual calculation method, how much would your May accrual be for?
What is $800?
500
How often should invoices be entered?
What is daily/as received?
500
Given the above information, what is the period's economic occupancy?
What is 94.62%?
1000
If the operations team can increase NOI by $150,000 in the year and assuming a 6% capitalization rate, what increase in valuation do you project?
What is $2,500,000?
The formula to determine value under the income capitalization approach is NOI / Capitalization Rate = Value