Property Management

A property manager who collects rent, pays bills, and retains the remainder as the owner's net income is operating under which accounting method?

AAccrual basis accounting
BCash basis trust accounting — collecting income and disbursing expenses on behalf of the owner✓ Correct
CDouble-entry bookkeeping
DPercentage-of-income management

Explanation

Property managers typically collect rent and other income, pay authorized expenses, and remit the net proceeds to the owner, maintaining accurate records in a trust/escrow account.

Related Nebraska Property Management Questions

Practice More Nebraska Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Nebraska Quiz →