CMCA EXAM 2024 REAL EXAM QUESTIONS AND
CORRECT ANSWERS(VERIFIED ANSWERS)|
AGRADE
Minimum Components of Financial Report
1. Statement of Income and Expenses compared to Budget
2. Balance sheet
Essential Documents for Unbudgeted Expense
1. Balance sheet
2. Statement of revenue and expenses
Decline in Investments
Result from expenditures out of reserve funds
Actual vs Budget
Compare statement of income and expenses to budget
When filing a liability claim...
Never admit negligence
Waiver of Lien
Contract provision that gives up the right to make a claim against the community
association for payments not received.
When to use:
- large contracts
- when subcontractors are necessary
Bid Request Preparation
1. Identify potential contractors
2. How long will the job take?
3. How much will the job cost?
Primary source for developing HOA's Maintenance Budget
Governing Documents: give notice requirements and budget cap info
Alternative to Increasing Assessments
Charging higher user fees
Board Resolutions
Establish maintenance guidelines
Fiduciary Responsibility of Board
Establishing internal controls
Authority of Board
Establish programs
Purpose of a Community Association
Deal with governance and business
Specific State Statutes
Greatest regulatory influence of HOAs
Hierarchy of Governing Documents
1. Recorded Deed or Map
2. Declarations
3. Articles of Incorporation
, 4. Bylaws
5. Rules and Regulations
Mediation
Alternative dispute resolution where a third party assists both parties in reaching a
mutually accepted agreement
Arbitration
Alternative dispute resolution where a third party makes a final decision for both parties
Duty of manger in meetings
Be the time keeper
Proxy
A written statement authorizing another person to vote on the signer's behalf.
Approval done by secretary.
Endorsements
Expand, contract, or clarify coverage
Abstention
To not cast a vote
Acceleration
The collection of all assessments due at the end of a fiscal year. Technique used to
collect assessments from delinquent owners
Accrual Basis of Accounting
Records revenue when earned and expenses when incurred
- Required by GAAP
Actual Cash Value
The depreciated value of an item
Ad Hoc Committee
Committee formed to deal with a one time issue
Advertising Injury
Damages resulting from infringement of copyright, slogan, or title
Aggregate Amount
The total amount the insurer will pay out under an insurance policy
Agreed Amount Endorsement
Provides for an agreed upon lime of property insurance
Coinsurance
A standard element in most property policies that obligates the insured to maintain a
certain amount of property insurance on the entire property or per structure, based on a
stated percentage, usually 80% - 90%
Appeal
A request for a review of a case by a higher authority
Articles of Incorporation
Document that brings a corporation into existence
- indicates whether stock will be issued
Assessments Receivable Insurance
Has a certain limited value
- applies to situations in which a covered loss happens to the property
Assignability Provision
CORRECT ANSWERS(VERIFIED ANSWERS)|
AGRADE
Minimum Components of Financial Report
1. Statement of Income and Expenses compared to Budget
2. Balance sheet
Essential Documents for Unbudgeted Expense
1. Balance sheet
2. Statement of revenue and expenses
Decline in Investments
Result from expenditures out of reserve funds
Actual vs Budget
Compare statement of income and expenses to budget
When filing a liability claim...
Never admit negligence
Waiver of Lien
Contract provision that gives up the right to make a claim against the community
association for payments not received.
When to use:
- large contracts
- when subcontractors are necessary
Bid Request Preparation
1. Identify potential contractors
2. How long will the job take?
3. How much will the job cost?
Primary source for developing HOA's Maintenance Budget
Governing Documents: give notice requirements and budget cap info
Alternative to Increasing Assessments
Charging higher user fees
Board Resolutions
Establish maintenance guidelines
Fiduciary Responsibility of Board
Establishing internal controls
Authority of Board
Establish programs
Purpose of a Community Association
Deal with governance and business
Specific State Statutes
Greatest regulatory influence of HOAs
Hierarchy of Governing Documents
1. Recorded Deed or Map
2. Declarations
3. Articles of Incorporation
, 4. Bylaws
5. Rules and Regulations
Mediation
Alternative dispute resolution where a third party assists both parties in reaching a
mutually accepted agreement
Arbitration
Alternative dispute resolution where a third party makes a final decision for both parties
Duty of manger in meetings
Be the time keeper
Proxy
A written statement authorizing another person to vote on the signer's behalf.
Approval done by secretary.
Endorsements
Expand, contract, or clarify coverage
Abstention
To not cast a vote
Acceleration
The collection of all assessments due at the end of a fiscal year. Technique used to
collect assessments from delinquent owners
Accrual Basis of Accounting
Records revenue when earned and expenses when incurred
- Required by GAAP
Actual Cash Value
The depreciated value of an item
Ad Hoc Committee
Committee formed to deal with a one time issue
Advertising Injury
Damages resulting from infringement of copyright, slogan, or title
Aggregate Amount
The total amount the insurer will pay out under an insurance policy
Agreed Amount Endorsement
Provides for an agreed upon lime of property insurance
Coinsurance
A standard element in most property policies that obligates the insured to maintain a
certain amount of property insurance on the entire property or per structure, based on a
stated percentage, usually 80% - 90%
Appeal
A request for a review of a case by a higher authority
Articles of Incorporation
Document that brings a corporation into existence
- indicates whether stock will be issued
Assessments Receivable Insurance
Has a certain limited value
- applies to situations in which a covered loss happens to the property
Assignability Provision
