MODULE 2: FINANCIAL MANAGEMENT FROM M100 WITH COMPLETE SOLUTIONS 100%

MODULE 2: FINANCIAL MANAGEMENT FROM M100
WITH COMPLETE SOLUTIONS 100%
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
a. cash basis


A ___________ occurs when expenses are greater than revenue
a. net income
b. net loss
c. net gain
d. net profit
b. net loss


Which is not one of the 3 major components of a balance sheet?
a. assets
b. liabilities
c. expenses
d. member's equity
c. expenses


True/False
A CPA's representation letter describes the nature of the work to be done, the type of report to be
prepared, the fee for services, the time frame for the assignment, and the accountant disclaimers
False - the Engagement Letter does that


a _________ is a year-end financial report prepared by a CPA without the assurance that the
information conforms to GAAP
a. compilation
b. review
c. audit
d. opinion letter
a. compilation


Community associations must file a federal income tax return every year: T/F
True


which of the following investment objectives for community associations refers to the ease which
which an investment can be converted into cash or a cash equivalent?

a. safety
b. liquidity
c. yield
d. treasury bills
b. liquidity