The starting point in calculating net operating income is the total annual income the property would produce assuming 100% occup

Question

3 years ago

6

The starting point in calculating net operating income is the total annual income the property would produce assuming 100% occup

ancy and no collection losses. This is commonly referred to as:A. effective Gross IncomeB. potential Gross IncomeC. operating expensesD. capital expenditures

Business

1 answer:

Viefleur [7K] · Answer 1 · 2022-01-18T12:55:32+03:00

Viefleur [7K]3 years ago

3 0

Answer:

B. potential Gross

Explanation:

Potential gross income refers to the gross income at 100% occupancy. On the other hand, effective gross income takes into account vacancy as well as other variables like collection loss.