Random CMCA Practice Test Questions and
answers
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 answers 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 answers C. Maintenance responsibility
chart along, with the governing documents, defines parameters of association
maintenance responsibility.
,Random CMCA Practice Test Questions and
answers
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 answers 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
,Random CMCA Practice Test Questions and
answers
C. Cover the depreciated value of all association buildings
D. Provide insurance for homeowners - correct answers 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 answers 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.
, Random CMCA Practice Test Questions and
answers
C. Already signed the petition to call the meeting.
D. Shares title with multiple owners. - correct answers 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 answers 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.
answers
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 answers 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 answers C. Maintenance responsibility
chart along, with the governing documents, defines parameters of association
maintenance responsibility.
,Random CMCA Practice Test Questions and
answers
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 answers 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
,Random CMCA Practice Test Questions and
answers
C. Cover the depreciated value of all association buildings
D. Provide insurance for homeowners - correct answers 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 answers 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.
, Random CMCA Practice Test Questions and
answers
C. Already signed the petition to call the meeting.
D. Shares title with multiple owners. - correct answers 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 answers 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.
