Random CMCA Practice Test Questions (Under
Construction) | 90 Questions with 100% Correct Answers
C. A work order/response form - A, B, and D speak to elements OTHER than a
control to ensure maintenance work is completed. Correct Answer: Which of the
following is a common management control for ensuring maintenance work is
performed in a timely manner?
A. A purchase order system
B. An equipment warranties
C. A work order/response form
D. A contractor's invoice
C. Maintenance responsibility chart along, with the governing documents, defines
parameters of association maintenance responsibility.
The other answers have no bearing on necessity of maintenance or maintenance
responsibility. Correct Answer: The primary management control tool for
identifying whether the association needs to maintain a particular property element
is:
A. Physical inspections
B. Association bylaws
C. Maintenance responsibility chart
D. Community asset inventory
B. Re-roofing the buildings - Large contracts involving significant material
purchase and/or use of sub-contractors commonly include lien waivers and should
be recommended to the board.
A, C, and D typically do not include significant material purchases or the use of
sub-contractors so a waiver of lien is not necessary. Correct Answer: In what type
of a contract would a waiver of lien by recommended?
A. Repair of the HVAC system
B. Re-roofing the buildings
C. Repair of the pool pump
D. Annual tree pruning
,B. Maintain certain limits of insurance - Co-insurance seeks to the limits of
insurance in place at the time of a loss and speaks to insurance obligation for the
parties involved in the claim.
Co-insurance does not obligate the Association to pay a deductible. Provides no
obligation to provide insurance for homeowners. Correct Answer: What does "Co-
Insurance" obligate the Association to do?
A. Pay the deductible
B. Maintain certain limits of insurance
C. Cover the depreciated value of all association buildings
D. Provide insurance for homeowners
A. Negotiate contracts within the bidding process.
Incorrect Answers:
B. Employment practices liability insurance is typically purchased by an
association that has employees to provide coverage against certain types of claims
by those employees, and usually accompanies a workers compensation insurance
policy.
C. The association MUST NEVER assume that contractors carry their own
insurance coverage and should require all contractors to provide evidence of
insurance.
D. D&O insurance policies is designed to pay for wrongful acts that do not lead to
property damage (PD), bodily injury (BI), personal injury (PI), or advertising
injury (AI); an example of a claim for coverage under D&O would be if a board of
directors is accused of not uniformly enforcing rules or covenants. Therefore, it is
unlikely that the services of independent contractors would lead to claims under
D&O. Correct Answer: When an association contracts out 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.
A. Did not notify association of their current address. It is the owner's
responsibility to provide current contact information to Management.
, Incorrect:
B. The duty to notify all owners of meetings belongs to the Board, which is often
delegated to Management.
C. Signing a petition to hold a meeting is not legal notice of the meeting. The duty
to notify all owners of meetings belongs to the Board, which is often delegated to
Management.
D. The notice of meetings is sent to the "Owner of Record" at the last known
address. In the case of multiple owners sharing title to a unit, the owners of that
unity have the duty to notify the Board/Management which one of the owners will
receive notices, and provide current contact information. Correct Answer: If an
owner fails to receive notice of a meeting, the association is not responsible if the
owner:
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.
A. Governing documents
Incorrect:
B. The maintenance plan is plan for doing repairs.
C. Will show financial position but not what maintenance work is required.
D. Reserves are funded separately for long term repairs. Correct Answer: What is
the primary source of requirements when developing the association's annual
maintenance budget?
A. Governing documents
B. State law
C. Annual audit
D. Reserve Study
B. More accurately reflects the association's financial condition. Under the
modified accrual basis, also sometimes referred to as modified cash basis, some
accounts, such as assessment income, are maintained on the accrual basis and other
accounts, such as interest or other miscellaneous income accounts, and some
Construction) | 90 Questions with 100% Correct Answers
C. A work order/response form - A, B, and D speak to elements OTHER than a
control to ensure maintenance work is completed. Correct Answer: Which of the
following is a common management control for ensuring maintenance work is
performed in a timely manner?
A. A purchase order system
B. An equipment warranties
C. A work order/response form
D. A contractor's invoice
C. Maintenance responsibility chart along, with the governing documents, defines
parameters of association maintenance responsibility.
The other answers have no bearing on necessity of maintenance or maintenance
responsibility. Correct Answer: The primary management control tool for
identifying whether the association needs to maintain a particular property element
is:
A. Physical inspections
B. Association bylaws
C. Maintenance responsibility chart
D. Community asset inventory
B. Re-roofing the buildings - Large contracts involving significant material
purchase and/or use of sub-contractors commonly include lien waivers and should
be recommended to the board.
A, C, and D typically do not include significant material purchases or the use of
sub-contractors so a waiver of lien is not necessary. Correct Answer: In what type
of a contract would a waiver of lien by recommended?
A. Repair of the HVAC system
B. Re-roofing the buildings
C. Repair of the pool pump
D. Annual tree pruning
,B. Maintain certain limits of insurance - Co-insurance seeks to the limits of
insurance in place at the time of a loss and speaks to insurance obligation for the
parties involved in the claim.
Co-insurance does not obligate the Association to pay a deductible. Provides no
obligation to provide insurance for homeowners. Correct Answer: What does "Co-
Insurance" obligate the Association to do?
A. Pay the deductible
B. Maintain certain limits of insurance
C. Cover the depreciated value of all association buildings
D. Provide insurance for homeowners
A. Negotiate contracts within the bidding process.
Incorrect Answers:
B. Employment practices liability insurance is typically purchased by an
association that has employees to provide coverage against certain types of claims
by those employees, and usually accompanies a workers compensation insurance
policy.
C. The association MUST NEVER assume that contractors carry their own
insurance coverage and should require all contractors to provide evidence of
insurance.
D. D&O insurance policies is designed to pay for wrongful acts that do not lead to
property damage (PD), bodily injury (BI), personal injury (PI), or advertising
injury (AI); an example of a claim for coverage under D&O would be if a board of
directors is accused of not uniformly enforcing rules or covenants. Therefore, it is
unlikely that the services of independent contractors would lead to claims under
D&O. Correct Answer: When an association contracts out 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.
A. Did not notify association of their current address. It is the owner's
responsibility to provide current contact information to Management.
, Incorrect:
B. The duty to notify all owners of meetings belongs to the Board, which is often
delegated to Management.
C. Signing a petition to hold a meeting is not legal notice of the meeting. The duty
to notify all owners of meetings belongs to the Board, which is often delegated to
Management.
D. The notice of meetings is sent to the "Owner of Record" at the last known
address. In the case of multiple owners sharing title to a unit, the owners of that
unity have the duty to notify the Board/Management which one of the owners will
receive notices, and provide current contact information. Correct Answer: If an
owner fails to receive notice of a meeting, the association is not responsible if the
owner:
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.
A. Governing documents
Incorrect:
B. The maintenance plan is plan for doing repairs.
C. Will show financial position but not what maintenance work is required.
D. Reserves are funded separately for long term repairs. Correct Answer: What is
the primary source of requirements when developing the association's annual
maintenance budget?
A. Governing documents
B. State law
C. Annual audit
D. Reserve Study
B. More accurately reflects the association's financial condition. Under the
modified accrual basis, also sometimes referred to as modified cash basis, some
accounts, such as assessment income, are maintained on the accrual basis and other
accounts, such as interest or other miscellaneous income accounts, and some
