CMCA PRACTICE EXAM
what are the two essential financial documents the BOD should use to determine
the amount of funds available for an unbudgeted expense? - ANSWERS-balance
sheet and statement of revenue and expense
the best reasoning for recommendation the modified accrual basis of accounting
method is that, compared to cash accounting, it: - ANSWERS-more accurately
reflects the associations financial condition
managers must be familiar with federal income tax requirements and options
because: - ANSWERS-under federal tax code, all organizations are taxable unless
specifically exempted
the interim financial report should, at a minimum, include: - ANSWERS-statement
of income and expenses, account balance, and a balance sheet
the manager is not usually responsible for preparing the: - ANSWERS-tax returns
what is the purpose of a management letter? - ANSWERS-to note the problem
areas in an associations financial operations and recommed modifications and
improvements
a significant decline in the amount of investments is mist likely the result of: -
ANSWERS-expenditures out of reserve funds
, if you want to know the difference between the actual and the budget figures for
a revenue account, to which documents should you refer? - ANSWERS-statement
of income and expenses and budget
on what basis is the community association reporting its finances when the
financial reports indicate income when received and expenses when paid? -
ANSWERS-cash basis
your association just completed its eighth month in the fiscal year. which financial
report would be most useful to project year end expenses? - ANSWERS-statement
of revenue and expenses
In preparing the association's annual financial report, many governing documents
specify: - ANSWERS-Retaining an independent certified public accountant
When a dispute is mediated, the uninvolved third party facilitates discussion and -
ANSWERS-Assists both parties in reaching a mutually acceptable agreement
When developing a rule, it must be consistent with.... - ANSWERS-Applicable
statues and governing documents
What would impact the operation of a newly installed entry control system? -
ANSWERS-Communicating the access control policy to residents
what are the two essential financial documents the BOD should use to determine
the amount of funds available for an unbudgeted expense? - ANSWERS-balance
sheet and statement of revenue and expense
the best reasoning for recommendation the modified accrual basis of accounting
method is that, compared to cash accounting, it: - ANSWERS-more accurately
reflects the associations financial condition
managers must be familiar with federal income tax requirements and options
because: - ANSWERS-under federal tax code, all organizations are taxable unless
specifically exempted
the interim financial report should, at a minimum, include: - ANSWERS-statement
of income and expenses, account balance, and a balance sheet
the manager is not usually responsible for preparing the: - ANSWERS-tax returns
what is the purpose of a management letter? - ANSWERS-to note the problem
areas in an associations financial operations and recommed modifications and
improvements
a significant decline in the amount of investments is mist likely the result of: -
ANSWERS-expenditures out of reserve funds
, if you want to know the difference between the actual and the budget figures for
a revenue account, to which documents should you refer? - ANSWERS-statement
of income and expenses and budget
on what basis is the community association reporting its finances when the
financial reports indicate income when received and expenses when paid? -
ANSWERS-cash basis
your association just completed its eighth month in the fiscal year. which financial
report would be most useful to project year end expenses? - ANSWERS-statement
of revenue and expenses
In preparing the association's annual financial report, many governing documents
specify: - ANSWERS-Retaining an independent certified public accountant
When a dispute is mediated, the uninvolved third party facilitates discussion and -
ANSWERS-Assists both parties in reaching a mutually acceptable agreement
When developing a rule, it must be consistent with.... - ANSWERS-Applicable
statues and governing documents
What would impact the operation of a newly installed entry control system? -
ANSWERS-Communicating the access control policy to residents
