CMCA Practice Test MCQS Questions and
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Terms in this set (91)
Which of the following is a common C. A work order/response form - A, B, and D speak
management control for ensuring to elements OTHER than a control to ensure
maintenance work is performed in a maintenance work is completed.
timely manner?
A. A purchase order system
B. An equipment warranties
C. A work order/response form
D. A contractor's invoice
The primary management control C. Maintenance responsibility chart along, with the
tool for identifying whether the governing documents, defines parameters of
association needs to maintain a association maintenance responsibility.
particular property element is:
The other answers have no bearing on necessity of
A. Physical inspections maintenance or maintenance responsibility.
B. Association bylaws
C. Maintenance responsibility chart
D. Community asset inventory
,In what type of a contract would a B. Re-roofing the buildings - Large contracts
waiver of lien by recommended? involving significant material purchase and/or use
of sub-contractors commonly include lien waivers
A. Repair of the HVAC system and should be recommended to the board.
B. Re-roofing the buildings
C. Repair of the pool pump A, C, and D typically do not include significant
D. Annual tree pruning material purchases or the use of sub-contractors so
a waiver of lien is not necessary.
What does "Co-Insurance" obligate B. Maintain certain limits of insurance - Co-
the Association to do? insurance seeks to the limits of insurance in place at
the time of a loss and speaks to insurance
A. Pay the deductible obligation for the parties involved in the claim.
B. Maintain certain limits of insurance
C. Cover the depreciated value of all
association buildings
D. Provide insurance for homeowners
When an association contracts out A. Negotiate contracts within the bidding process.
all of its services and has no
employees, it is a best business
practice to:
A. Negotiate contracts within the
bidding process.
B. Purchase employment practices
liability insurance.
C. Assume the contractors carry their
own insurance coverage.
D. Increase the coverage under the
D&O insurance policy.
,If an owner fails to receive notice of A. Did not notify association of their current
a meeting, the association is not address. It is the owner's responsibility to provide
responsible if the owner: current contact information to Management.
A. Did not notify association of their
current address.
B. Does not usually attend the
meetings.
C. Already signed the petition to call
the meeting.
D. Shares title with multiple owners.
What is the primary source of A. Governing documents
requirements when developing the
association's annual maintenance
budget?
A. Governing documents
B. State law
C. Annual audit
D. Reserve Study
, The best reasoning for B. More accurately reflects the association's
recommending the modified accrual financial condition. Under the modified accrual
accounting method is that, compared basis, also sometimes referred to as modified cash
to cash accounting, it: basis, some accounts, such as assessment income,
are maintained on the accrual basis and other
A. Will make future audit work more accounts, such as interest or other miscellaneous
accurate. income accounts, and some expenses, such as
B. More accurately reflects the miscellaneous repairs, are maintained on a cash
association's financial condition. basis. The accrual of major expenses in particular,
C. Is more easily understood by such as a contract for landscaping, trash removal,
board members. etc., regardless of non-receipt invoices, gives the
D. Can be accomplishment more read a much more accurate depiction of the
quickly. association's financial standing, as the accruals
serve to alert the reader to recognition of
obligations that the association must meet.
TRUE OR FALSE: FALSE
The basic authority in a community
association lies with the developer.
The board of directors in a b. fiduciary duty
community association has a
_____________ to act in the best interests
and for the benefit of the community
as a whole.
a. bond
b. fiduciary duty
c. ballot
d. quorum
Answers | latest update
Save
Terms in this set (91)
Which of the following is a common C. A work order/response form - A, B, and D speak
management control for ensuring to elements OTHER than a control to ensure
maintenance work is performed in a maintenance work is completed.
timely manner?
A. A purchase order system
B. An equipment warranties
C. A work order/response form
D. A contractor's invoice
The primary management control C. Maintenance responsibility chart along, with the
tool for identifying whether the governing documents, defines parameters of
association needs to maintain a association maintenance responsibility.
particular property element is:
The other answers have no bearing on necessity of
A. Physical inspections maintenance or maintenance responsibility.
B. Association bylaws
C. Maintenance responsibility chart
D. Community asset inventory
,In what type of a contract would a B. Re-roofing the buildings - Large contracts
waiver of lien by recommended? involving significant material purchase and/or use
of sub-contractors commonly include lien waivers
A. Repair of the HVAC system and should be recommended to the board.
B. Re-roofing the buildings
C. Repair of the pool pump A, C, and D typically do not include significant
D. Annual tree pruning material purchases or the use of sub-contractors so
a waiver of lien is not necessary.
What does "Co-Insurance" obligate B. Maintain certain limits of insurance - Co-
the Association to do? insurance seeks to the limits of insurance in place at
the time of a loss and speaks to insurance
A. Pay the deductible obligation for the parties involved in the claim.
B. Maintain certain limits of insurance
C. Cover the depreciated value of all
association buildings
D. Provide insurance for homeowners
When an association contracts out A. Negotiate contracts within the bidding process.
all of its services and has no
employees, it is a best business
practice to:
A. Negotiate contracts within the
bidding process.
B. Purchase employment practices
liability insurance.
C. Assume the contractors carry their
own insurance coverage.
D. Increase the coverage under the
D&O insurance policy.
,If an owner fails to receive notice of A. Did not notify association of their current
a meeting, the association is not address. It is the owner's responsibility to provide
responsible if the owner: current contact information to Management.
A. Did not notify association of their
current address.
B. Does not usually attend the
meetings.
C. Already signed the petition to call
the meeting.
D. Shares title with multiple owners.
What is the primary source of A. Governing documents
requirements when developing the
association's annual maintenance
budget?
A. Governing documents
B. State law
C. Annual audit
D. Reserve Study
, The best reasoning for B. More accurately reflects the association's
recommending the modified accrual financial condition. Under the modified accrual
accounting method is that, compared basis, also sometimes referred to as modified cash
to cash accounting, it: basis, some accounts, such as assessment income,
are maintained on the accrual basis and other
A. Will make future audit work more accounts, such as interest or other miscellaneous
accurate. income accounts, and some expenses, such as
B. More accurately reflects the miscellaneous repairs, are maintained on a cash
association's financial condition. basis. The accrual of major expenses in particular,
C. Is more easily understood by such as a contract for landscaping, trash removal,
board members. etc., regardless of non-receipt invoices, gives the
D. Can be accomplishment more read a much more accurate depiction of the
quickly. association's financial standing, as the accruals
serve to alert the reader to recognition of
obligations that the association must meet.
TRUE OR FALSE: FALSE
The basic authority in a community
association lies with the developer.
The board of directors in a b. fiduciary duty
community association has a
_____________ to act in the best interests
and for the benefit of the community
as a whole.
a. bond
b. fiduciary duty
c. ballot
d. quorum
