Random CMCA Practice Test Questions
AND ANSWERS 100% CORRECT
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 Correct Answer: C. A work order/response form - A, B,
and D speak to elements OTHER than a control to ensure maintenance work is
completed.
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 Correct Answer: 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.
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 Correct Answer: 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.
,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 Correct Answer: 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.
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. Correct Answer: A.
Negotiate contracts within the bidding process.
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. Correct Answer: A. Did not notify
association of their current address. It is the owner's responsibility to provide
current contact information to Management.
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 Correct Answer: A. Governing documents
The best reasoning for recommending the modified accrual accounting method is
that, compared to cash accounting, it:
A. Will make future audit work more accurate.
, B. More accurately reflects the association's financial condition.
C. Is more easily understood by board members.
D. Can be accomplishment more quickly. Correct Answer: 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 expenses, such as miscellaneous
repairs, are maintained on a cash basis. The accrual of major expenses in
particular, such as a contract for landscaping, trash removal, etc., regardless of
non-receipt invoices, gives the read a much more accurate depiction of the
association's financial standing, as the accruals serve to alert the reader to
recognition of obligations that the association must meet.
TRUE OR FALSE:
The basic authority in a community association lies with the developer. Correct
Answer: FALSE
The board of directors in a 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 Correct Answer: b. fiduciary duty
When developing a rule, it must be consistent with:
A. Fine schedules as approved by the courts
B. Board recommendations and resolutions
C. Guidelines established within the governing documents
D. Applicable statues and governing documents Correct Answer: D. Applicable
statues and governing documents. Rules cannot conflict with statues and governing
documents.
In an initial letter you send to an owner who has violated one of the association's
adopted rules, which of the following is included?
A. The amount of fine assessed.
B. Steps to amend the rules.
AND ANSWERS 100% CORRECT
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 Correct Answer: C. A work order/response form - A, B,
and D speak to elements OTHER than a control to ensure maintenance work is
completed.
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 Correct Answer: 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.
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 Correct Answer: 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.
,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 Correct Answer: 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.
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. Correct Answer: A.
Negotiate contracts within the bidding process.
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. Correct Answer: A. Did not notify
association of their current address. It is the owner's responsibility to provide
current contact information to Management.
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 Correct Answer: A. Governing documents
The best reasoning for recommending the modified accrual accounting method is
that, compared to cash accounting, it:
A. Will make future audit work more accurate.
, B. More accurately reflects the association's financial condition.
C. Is more easily understood by board members.
D. Can be accomplishment more quickly. Correct Answer: 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 expenses, such as miscellaneous
repairs, are maintained on a cash basis. The accrual of major expenses in
particular, such as a contract for landscaping, trash removal, etc., regardless of
non-receipt invoices, gives the read a much more accurate depiction of the
association's financial standing, as the accruals serve to alert the reader to
recognition of obligations that the association must meet.
TRUE OR FALSE:
The basic authority in a community association lies with the developer. Correct
Answer: FALSE
The board of directors in a 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 Correct Answer: b. fiduciary duty
When developing a rule, it must be consistent with:
A. Fine schedules as approved by the courts
B. Board recommendations and resolutions
C. Guidelines established within the governing documents
D. Applicable statues and governing documents Correct Answer: D. Applicable
statues and governing documents. Rules cannot conflict with statues and governing
documents.
In an initial letter you send to an owner who has violated one of the association's
adopted rules, which of the following is included?
A. The amount of fine assessed.
B. Steps to amend the rules.
