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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q28-Q33):

NEW QUESTION # 28
When a farm is sold, there are exemptions to the payment of harmonized sales tax (HST). In which of the following circumstances is a farmer responsible to pay HST to the Canada Revenue Agency (CRA)?

A. The farm is sold to a corporation and the HST is included in the selling price.
B. The farmer sells the farm to a relative.
C. The farmer uses a smaller portion of the farm for a residence.
D. The farm has been used for personal use.

Answer: D

NEW QUESTION # 29
A salesperson is helping a buyer client to purchase a piece of vacant land to develop in the future. The salesperson recommends that the buyer consult with a third-party professional because the salesperson cannot provide the service with reasonable knowledge, skill, judgment, and competence. Which of the following is NOT a professional the salesperson would likely recommend to the buyer?

A. A zoning specialist in the city's planning department
B. A consultant in a financial institution
C. An appraiser with Accredited Appraiser Canadian Institute (AACI) designation
D. A legal consultant who specializes in evicting residential tenants

Answer: D

NEW QUESTION # 30
If a retail unit has a usable area of 3,482 sq. ft. with a conversion rate of 1.1235, what would the tenant's rentable area be?

A. The retail tenant's rentable area would be 3,605 sq. ft.
B. The retail tenant's rentable area would be 3,073 sq.ft.
C. The retail tenant's rentable area would be 3,482 sq. ft.
D. The retail tenant's rentable area would be 3,912 sq.ft.

Answer: D

NEW QUESTION # 31
In regard to cash flow into and out of a business, which of the following is correct?

A. Operating cash flow can be positive or negative.
B. Operating cash flow is used when determining yield on an investment property, while sales proceeds cash flow is not used for this purpose.
C. Sales proceeds cash flow does not affect investor decisions.
D. Sales proceeds cash flow is used when determining yield on an investment property, while operating cash flow is not used for this purpose.

Answer: A

NEW QUESTION # 32
A lender completes a financial statement analysis and calculation on various ratios that would indicate the financial performance of the commercial building. Which of the following is NOT correct?

A. The success of ventures often rests in the availability and suitability of financing.
B. Lenders will apply various financial ratios to get a solid understanding of the business's performance and the ability of the borrower to service debt.
C. The investor is afforded the opportunity to enhance yield.
D. It does not matter; mortgaging does not affect cash flow and yields.

Answer: D

NEW QUESTION # 33
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