How long must an association maintain financial and accounting records?
A. one calendar year
B. eighteen months
C. seven years
D. indefinitely - ANSWER C. 7 Years
How soon after the end of the fiscal year must the association prepare and complete a finan-
cial report?
A. Within 21 days
B. Within 30 days
C. Within 90 days
D. Within 120 days - ANSWER C.) Within 90 days
How often does a community association have to file a financial report with the Florida De-
partment of State?
A. Monthly
B. Quarterly
C. Annually
D. Every 5 years - ANSWER C.) Annually
What is the correct order of increasingly stringent examinations of annual financial reports?
A. Cash accounting, audited, reviewed, compiled
B. Cash accounting, compiled, reviewed, audited
C. Reviewed, cash accounting, compiled, audited
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,D. Cash accounting, reviewed, compiled, audited - ANSWER B.) Cash accounting, com-
piled, reviewed, audited (CACRA)
An association has a total annual revenue of $280,000. What kind of financial statements
should they prepare?
A. Reviewed
B. Compiled
C. Audited
D. Report of cash receipts - ANSWER B.) Compiled
If an association has fewer than 50 units, what type of financial statement is required to be
prepared?
A. Compiled
B. Reviewed
C. Report of cash receipts and expenditures
D. Audited - ANSWER C.) Report of cash receipts and expenditures
An association with annual revenues of less than $150,000 or with fewer than 50 par-
cels/units is required to prepare.
A. An audited financial report
B. A compiled financial report
C. A report of cash receipts and expenditures
D. A reviewed financial report - ANSWER C.) A report of cash receipts and expenditures
What must accounting records include?
A. Records of all receipts and expenditures
B. Audits, reviews and financial reports
C. Work contracts
D. All of the above - ANSWER D.) All of the above
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, Which method of accounting is accepted under generally accepted accounting principles
(GAAP)?
A. The cash method
B. The accrual method
C. The modified cash method
D. The modified accrual method - ANSWER B.) The Accrual Method
B.Which method of accounting counts income when a sale occurs, and expenses when
goods or services are received?
A. The cash method
B. The accrual method
C. The modified cash method
D. The modified accrual method - ANSWER B.) The Accrual Method
Which of the following is not a responsibility of the community association manager?
A. Draft meeting notices
B. Seeking competitive maintenance bids
C. Providing guarantees for financial reports
D. Calculating certificates of assessment - ANSWER C.) Providing guarantees for financial
reports
Most community associations are formed as non-profit corporations, however they still must
A. File a notice of intent with the State of Florida
B. File with the IRS annually
C. File returns with both the state and the IRS, and pay taxes if due
D. None of these - ANSWER C.) File returns with both the state and the IRS, and pay taxes
if due
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A. one calendar year
B. eighteen months
C. seven years
D. indefinitely - ANSWER C. 7 Years
How soon after the end of the fiscal year must the association prepare and complete a finan-
cial report?
A. Within 21 days
B. Within 30 days
C. Within 90 days
D. Within 120 days - ANSWER C.) Within 90 days
How often does a community association have to file a financial report with the Florida De-
partment of State?
A. Monthly
B. Quarterly
C. Annually
D. Every 5 years - ANSWER C.) Annually
What is the correct order of increasingly stringent examinations of annual financial reports?
A. Cash accounting, audited, reviewed, compiled
B. Cash accounting, compiled, reviewed, audited
C. Reviewed, cash accounting, compiled, audited
1
,D. Cash accounting, reviewed, compiled, audited - ANSWER B.) Cash accounting, com-
piled, reviewed, audited (CACRA)
An association has a total annual revenue of $280,000. What kind of financial statements
should they prepare?
A. Reviewed
B. Compiled
C. Audited
D. Report of cash receipts - ANSWER B.) Compiled
If an association has fewer than 50 units, what type of financial statement is required to be
prepared?
A. Compiled
B. Reviewed
C. Report of cash receipts and expenditures
D. Audited - ANSWER C.) Report of cash receipts and expenditures
An association with annual revenues of less than $150,000 or with fewer than 50 par-
cels/units is required to prepare.
A. An audited financial report
B. A compiled financial report
C. A report of cash receipts and expenditures
D. A reviewed financial report - ANSWER C.) A report of cash receipts and expenditures
What must accounting records include?
A. Records of all receipts and expenditures
B. Audits, reviews and financial reports
C. Work contracts
D. All of the above - ANSWER D.) All of the above
2
, Which method of accounting is accepted under generally accepted accounting principles
(GAAP)?
A. The cash method
B. The accrual method
C. The modified cash method
D. The modified accrual method - ANSWER B.) The Accrual Method
B.Which method of accounting counts income when a sale occurs, and expenses when
goods or services are received?
A. The cash method
B. The accrual method
C. The modified cash method
D. The modified accrual method - ANSWER B.) The Accrual Method
Which of the following is not a responsibility of the community association manager?
A. Draft meeting notices
B. Seeking competitive maintenance bids
C. Providing guarantees for financial reports
D. Calculating certificates of assessment - ANSWER C.) Providing guarantees for financial
reports
Most community associations are formed as non-profit corporations, however they still must
A. File a notice of intent with the State of Florida
B. File with the IRS annually
C. File returns with both the state and the IRS, and pay taxes if due
D. None of these - ANSWER C.) File returns with both the state and the IRS, and pay taxes
if due
3
