Florida Real Estate Exam Practice 2025 – Complete Study Resource

Question: 1 / 400

What does a DCR of less than one indicate?

Positive cash flow

Neutral cash flow

Negative cash flow

A DCR of less than one indicates negative cash flow. This means that the property is not generating enough income to cover its expenses, which can be a sign of financial trouble. Options A and D are incorrect because a DCR of less than one does not indicate positive or balanced cash flow. Option B is also incorrect because a DCR of less than one is not considered neutral, but rather a sign of negative cash flow.

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Balanced cash flow

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