CMCA PRACTICE EXAM (ACTUAL 2025)
QUESTIONS WITH COMPLETE SOLUTION
You have a proprietary lease in XYZ development. Which of
the following best describes your interest in the property?
A. A time-share interest
B. A divided interest
C. An undivided interest
D. Stock membership - <<<Answers>>>D
Management conducts its tasks for the day to day operation of
the association in accordance with the:
A. Minutes
B. Contract
C. Board Presidents instructions
D. Resolutions - <<<Answers>>>B
A board exercises its fiduciary responsibility by:
A. Authorizing the manager to enforce rules
B. Establishing internal controls
C. Authorizing of a committee to adopt due process
procedures
D. Voting to eliminate parking rules - <<<Answers>>>B
The primary management control tool for identifying whether
the association needs to maintain a particular property element
is:
, CMCA PRACTICE EXAM (ACTUAL 2025)
QUESTIONS WITH COMPLETE SOLUTION
A. Physical inspections
B. Association Bylaws
C. Maintenance responsibility chart
D. Community asset inventory - <<<Answers>>>C
On what basis is the community association reporting its
finances when the financial reports indicate income when
received and expenses when paid?
A. Cash basis
B. Modified accrual basis
C. Accrued basis
D. Modified cash basis - <<<Answers>>>A
Community association managers must be familiar with
Federal income tax requirements and options because:
A. The RS will intermittently interview the manager
concerning tax filing status.
B. States require managers to be knowledgeable in this area of
community association finance.
C. Under federal tax code, all organizations are taxable on
their income unless specifically exempted.
D. The accountant will require input from the community
association when the tax return is prepared. -
<<<Answers>>>C
, CMCA PRACTICE EXAM (ACTUAL 2025)
QUESTIONS WITH COMPLETE SOLUTION
The manager is not usually responsible for preparing the:
A. Investment report
B. Tax returns
C. Annual Budget
D. Variance report - <<<Answers>>>B
What are the two essential financial documents the board of
directors should use to determine the amount of funds
available for an unbudgeted expense?
A. Statement of cash flows and accounts receivable report
B. Balance sheet and statement of revenue and expenses
C. Statement of cash flows and check registers
D. Replacement reserve report and general ledger -
<<<Answers>>>B
A significant decline in the amount of investments is most
likely the result of:
A. Failure to invest association funds properly
B. Seasonal timing of expenses
C. Expenditures out of reserve funds
D. Failure to collect delinquent assessments -
<<<Answers>>>C
QUESTIONS WITH COMPLETE SOLUTION
You have a proprietary lease in XYZ development. Which of
the following best describes your interest in the property?
A. A time-share interest
B. A divided interest
C. An undivided interest
D. Stock membership - <<<Answers>>>D
Management conducts its tasks for the day to day operation of
the association in accordance with the:
A. Minutes
B. Contract
C. Board Presidents instructions
D. Resolutions - <<<Answers>>>B
A board exercises its fiduciary responsibility by:
A. Authorizing the manager to enforce rules
B. Establishing internal controls
C. Authorizing of a committee to adopt due process
procedures
D. Voting to eliminate parking rules - <<<Answers>>>B
The primary management control tool for identifying whether
the association needs to maintain a particular property element
is:
, CMCA PRACTICE EXAM (ACTUAL 2025)
QUESTIONS WITH COMPLETE SOLUTION
A. Physical inspections
B. Association Bylaws
C. Maintenance responsibility chart
D. Community asset inventory - <<<Answers>>>C
On what basis is the community association reporting its
finances when the financial reports indicate income when
received and expenses when paid?
A. Cash basis
B. Modified accrual basis
C. Accrued basis
D. Modified cash basis - <<<Answers>>>A
Community association managers must be familiar with
Federal income tax requirements and options because:
A. The RS will intermittently interview the manager
concerning tax filing status.
B. States require managers to be knowledgeable in this area of
community association finance.
C. Under federal tax code, all organizations are taxable on
their income unless specifically exempted.
D. The accountant will require input from the community
association when the tax return is prepared. -
<<<Answers>>>C
, CMCA PRACTICE EXAM (ACTUAL 2025)
QUESTIONS WITH COMPLETE SOLUTION
The manager is not usually responsible for preparing the:
A. Investment report
B. Tax returns
C. Annual Budget
D. Variance report - <<<Answers>>>B
What are the two essential financial documents the board of
directors should use to determine the amount of funds
available for an unbudgeted expense?
A. Statement of cash flows and accounts receivable report
B. Balance sheet and statement of revenue and expenses
C. Statement of cash flows and check registers
D. Replacement reserve report and general ledger -
<<<Answers>>>B
A significant decline in the amount of investments is most
likely the result of:
A. Failure to invest association funds properly
B. Seasonal timing of expenses
C. Expenditures out of reserve funds
D. Failure to collect delinquent assessments -
<<<Answers>>>C
