M100 The Essentials of Community Association
Management Latest Update 2024-2025 Actual
Exam Questions and 100% Verified Correct
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3 Basic Types of Community Associations - CORRECT ANSWER: Planned Community
- Owners owns his lot/living unit and community owns common areas (tennis courts,
basketball courts, etc.).
Condominium - Individual owns unit and undivided interest (percentage) in common
elements.
Cooperative - Individual owns stock or membership in cooperative and holds a
proprietary lease/occupancy agreement.
3 components of Statement of Revenue and Expense - CORRECT ANSWER: Revenue
- Earning of community
Expense - Cost of goods/services used to operate/maintain community.
Net revenue (or loss)
3 Major Components of a Balance Sheet - CORRECT ANSWER: Assets - Anything
owned that has value.
Liabilities - What is owed to others or collected in advance.
Members equity - Difference between assets and liabilities.
4 Types of Insurance Coverage - CORRECT ANSWER: PLIP
Personal
Liability
Income
Personnel
, Accounting Methods - CORRECT ANSWER: Cash Basis - Income received and
expenses paid
Accrual Basis - Income earned and expense received
Modified Cash Basis - Records income (assessments) on accrual basis and expenses
on cash basis
Alternative DIspute Resolution (ADR) - CORRECT ANSWER: 3rd party resolution used
before lawsuit/court
Articles of Incorporation - CORRECT ANSWER: Brings corporation into existence.
Coops must incorporate because the the corporation owns all the property.
Other types of communities may incorporate.
Balance sheet - CORRECT ANSWER: Snapshot of financial condition at a specific point
in time. Lists what the association owes and owns and its net worth.
Bankruptcy - CORRECT ANSWER: Chapter 7 - Liquidation
Chapter 11 - Corporate
Chapter 13 - Personal reorganization
Benefits of incorporating - CORRECT ANSWER: Limit liability of individual owners.
Right granted all corporations
Easier to deal with utility companies, vendors, etc.
Board Resolutions - CORRECT ANSWER: A motion that follows a set format and
formally adopted by the board.
Budget Line Items - CORRECT ANSWER: Mandatory & Discretionary
Management Latest Update 2024-2025 Actual
Exam Questions and 100% Verified Correct
Answers Guaranteed A+
3 Basic Types of Community Associations - CORRECT ANSWER: Planned Community
- Owners owns his lot/living unit and community owns common areas (tennis courts,
basketball courts, etc.).
Condominium - Individual owns unit and undivided interest (percentage) in common
elements.
Cooperative - Individual owns stock or membership in cooperative and holds a
proprietary lease/occupancy agreement.
3 components of Statement of Revenue and Expense - CORRECT ANSWER: Revenue
- Earning of community
Expense - Cost of goods/services used to operate/maintain community.
Net revenue (or loss)
3 Major Components of a Balance Sheet - CORRECT ANSWER: Assets - Anything
owned that has value.
Liabilities - What is owed to others or collected in advance.
Members equity - Difference between assets and liabilities.
4 Types of Insurance Coverage - CORRECT ANSWER: PLIP
Personal
Liability
Income
Personnel
, Accounting Methods - CORRECT ANSWER: Cash Basis - Income received and
expenses paid
Accrual Basis - Income earned and expense received
Modified Cash Basis - Records income (assessments) on accrual basis and expenses
on cash basis
Alternative DIspute Resolution (ADR) - CORRECT ANSWER: 3rd party resolution used
before lawsuit/court
Articles of Incorporation - CORRECT ANSWER: Brings corporation into existence.
Coops must incorporate because the the corporation owns all the property.
Other types of communities may incorporate.
Balance sheet - CORRECT ANSWER: Snapshot of financial condition at a specific point
in time. Lists what the association owes and owns and its net worth.
Bankruptcy - CORRECT ANSWER: Chapter 7 - Liquidation
Chapter 11 - Corporate
Chapter 13 - Personal reorganization
Benefits of incorporating - CORRECT ANSWER: Limit liability of individual owners.
Right granted all corporations
Easier to deal with utility companies, vendors, etc.
Board Resolutions - CORRECT ANSWER: A motion that follows a set format and
formally adopted by the board.
Budget Line Items - CORRECT ANSWER: Mandatory & Discretionary
