M100 MODULE 2 FINANCIAL MANAGEMENT QUESTIONS WITH VERIFIED ANSWERS 2025

M100 MODULE 2 FINANCIAL
MANAGEMENT QUESTIONS WITH
VERIFIED ANSWERS 2025


Each of the following statements regarding community
association assessments are true EXCEPT:


a. assessments penalize residents for violating
association rules
b. an assessment is the owner's financial obligation
to the community association during a given period
of time
c. an assessment for an owner's share of the
common expenses is a binding legal obligation based
on the community association's governing
documents
d. an annual assessment may be paid on a monthly,
quarterly, or annual basis - CORRECT ANSWER -a.
assessments penalize residents for violating
association rules

, Because a community association relies on the timely
collection of assessments in order to meet operating
expense requirements, delinquent payments may
result in each of the following EXCEPT: a. property
beginning to appear run down
b. budget surplus
c. disharmony between paying owners and
delinquent ones
d.essential maintenance becoming unaffordable -
CORRECT ANSWER -b. budget surplus


Which of the following accounting methods records
revenue when it is collected and expenses when they
are paid?
a. cash basis
b. accrual basis
c. modified cash basis
d. modified accrual basis - CORRECT ANSWER -a. cash
basis