CMCA Budget, Reserves,
Investments and Assessments Pre
Test
1. A. Discretionary line items
2. D. Mandatory line gadgets - ANS-IDENTIFY THE TWO TYPES OF EXPENDITURES IN A
BUDGET
1. Items primarily based on owner, board, and committee goals. They are items people
would really like to have. They can also be voted out of the budget.
2. Items based on community and owner desires and requirements that the community is
obligated to meet.
A. Discretionary line items
b. Reserve look at
c. Evaluation
d. Mandatory line items
1. B. Audit
2. A. Review
3. C. Compilation - ANS-MATCH:
There are 3 varieties of reports that a CPA usually presents:
1. An exam of the accounting statistics and approaches of an company for the purpose of
verifying the accuracy and completeness of economic records.
2. A less thorough, and consequently less highly-priced, evaluation of a network
association's monetary sports.
3. A presentation of financial statements with the aid of a CPA without the assurance that the
statistics conforms to GAAP.
A. Review
b. Audit
c. Compilation
1. B. Cash Basis
2. C. Accrual Basis
three. A. Modified - ANS-IDENTIFY THE ACCOUNT METHODS USED FOR REPORTS
,1. Revenue recorded while RECEIVED, Expenses recorded when PAID.
2. Revenue recorded while EARNED, Expenses recorded while INCURRED.
3. Revenue recorded whilst EARNED, Expenses recorded when PAID.
A. Modified
b. Cash Basis
c. Accrual Basis
1. B. Deficit in member's fairness
2. A. Surplus - ANS-1. If an association's liabilities are extra than it is belongings, it has a:
2. If an affiliation's liabilities are much less than it's belongings, it has a:
a. Surplus
b. Deficit in member's equity
1. B. FHA (Federal Housing Administration)
2. E. GAAP (Generally Accepted Accounting Principals)
three. D. Fair Debt Collection Practices Act
four. F. FDIC (Federal Deposit Insurance Corporation)
5. A. FHLMC (Federal Home Loan Mortgage Corporation)
6. C. FNMA (Federal National Mortgage Association) - ANS-1. Regulates and affects such
gadgets as the quantity of coverage a community association need to carry, processes for
financial operations and necessities for the upkeep of the assets.
2. Provide extra information to assist the reader apprehend the community affiliation's
monetary situation and offer uniformity amongst reviews from one-of-a-kind corporations.
3. This requires that the person that owes a debt acquire written observe.
Four. A authorities organisation that guarantees buyers' deposits in member institutions.
Five. Buys mortgages from creditors and in doing so requires sure types of coverage to be in
place.
6. Federally established secondary mortgage group that may set requirements that your
community association will have to meet if proprietors are to take part of their financing
programs).
A. FHLMC
b. FHA
c. FNMA
d. Fair Debt Collection Practices Act
e. GAAP
f. FDIC
, 1. B. Percent method
2. A. Same method computation - ANS-IDENTIFY THE TWO WAYS TO CALCULATE
ASSESSMENTS
1. Uses the assigned percentage to decide every personal'er prorata share.
2. Assesses every owner similarly for every lot or unit.
A. Same approach computation
b. Percentage method
1. B. Revenue
2. C. Expenses
3. A. Net revenue - Also called excess left over after deducting costs - ANS-MATCH THE
STATEMENT OF REVENUE AND EXPENSE COMPONENTS
1. Represents the earnings of the community association.
2. Are the cost of products and offerings used to perform and hold the community's property.
3. Is the quantity left over after deducting charges from earnings.
A. Net revenue
b. Revenue
c. Expenses
d. Liabilities
1. B. Safety
2. C. Liquidity
3. A. Yield - ANS-MATCH THE INVESTMENT OBJECTIVES
1. Protecting the important (amount of authentic investment) from loss.
2. The ease with which an investment can be converted into cash or a cash equivalent.
Three. The quantity of go back on an funding.
A. Yield
b. Safety
c. Liquidity
1. B. 0-base budgeting
2. A. Historic trend budgeting - ANS-IDENITFY THE EXPENSE CALCULATION METHODS
1. All line objects are set to 0 and the amount of finances allocated to every must be justified.
Investments and Assessments Pre
Test
1. A. Discretionary line items
2. D. Mandatory line gadgets - ANS-IDENTIFY THE TWO TYPES OF EXPENDITURES IN A
BUDGET
1. Items primarily based on owner, board, and committee goals. They are items people
would really like to have. They can also be voted out of the budget.
2. Items based on community and owner desires and requirements that the community is
obligated to meet.
A. Discretionary line items
b. Reserve look at
c. Evaluation
d. Mandatory line items
1. B. Audit
2. A. Review
3. C. Compilation - ANS-MATCH:
There are 3 varieties of reports that a CPA usually presents:
1. An exam of the accounting statistics and approaches of an company for the purpose of
verifying the accuracy and completeness of economic records.
2. A less thorough, and consequently less highly-priced, evaluation of a network
association's monetary sports.
3. A presentation of financial statements with the aid of a CPA without the assurance that the
statistics conforms to GAAP.
A. Review
b. Audit
c. Compilation
1. B. Cash Basis
2. C. Accrual Basis
three. A. Modified - ANS-IDENTIFY THE ACCOUNT METHODS USED FOR REPORTS
,1. Revenue recorded while RECEIVED, Expenses recorded when PAID.
2. Revenue recorded while EARNED, Expenses recorded while INCURRED.
3. Revenue recorded whilst EARNED, Expenses recorded when PAID.
A. Modified
b. Cash Basis
c. Accrual Basis
1. B. Deficit in member's fairness
2. A. Surplus - ANS-1. If an association's liabilities are extra than it is belongings, it has a:
2. If an affiliation's liabilities are much less than it's belongings, it has a:
a. Surplus
b. Deficit in member's equity
1. B. FHA (Federal Housing Administration)
2. E. GAAP (Generally Accepted Accounting Principals)
three. D. Fair Debt Collection Practices Act
four. F. FDIC (Federal Deposit Insurance Corporation)
5. A. FHLMC (Federal Home Loan Mortgage Corporation)
6. C. FNMA (Federal National Mortgage Association) - ANS-1. Regulates and affects such
gadgets as the quantity of coverage a community association need to carry, processes for
financial operations and necessities for the upkeep of the assets.
2. Provide extra information to assist the reader apprehend the community affiliation's
monetary situation and offer uniformity amongst reviews from one-of-a-kind corporations.
3. This requires that the person that owes a debt acquire written observe.
Four. A authorities organisation that guarantees buyers' deposits in member institutions.
Five. Buys mortgages from creditors and in doing so requires sure types of coverage to be in
place.
6. Federally established secondary mortgage group that may set requirements that your
community association will have to meet if proprietors are to take part of their financing
programs).
A. FHLMC
b. FHA
c. FNMA
d. Fair Debt Collection Practices Act
e. GAAP
f. FDIC
, 1. B. Percent method
2. A. Same method computation - ANS-IDENTIFY THE TWO WAYS TO CALCULATE
ASSESSMENTS
1. Uses the assigned percentage to decide every personal'er prorata share.
2. Assesses every owner similarly for every lot or unit.
A. Same approach computation
b. Percentage method
1. B. Revenue
2. C. Expenses
3. A. Net revenue - Also called excess left over after deducting costs - ANS-MATCH THE
STATEMENT OF REVENUE AND EXPENSE COMPONENTS
1. Represents the earnings of the community association.
2. Are the cost of products and offerings used to perform and hold the community's property.
3. Is the quantity left over after deducting charges from earnings.
A. Net revenue
b. Revenue
c. Expenses
d. Liabilities
1. B. Safety
2. C. Liquidity
3. A. Yield - ANS-MATCH THE INVESTMENT OBJECTIVES
1. Protecting the important (amount of authentic investment) from loss.
2. The ease with which an investment can be converted into cash or a cash equivalent.
Three. The quantity of go back on an funding.
A. Yield
b. Safety
c. Liquidity
1. B. 0-base budgeting
2. A. Historic trend budgeting - ANS-IDENITFY THE EXPENSE CALCULATION METHODS
1. All line objects are set to 0 and the amount of finances allocated to every must be justified.
