CMCA EXAM LATEST EXAM (LATEST VERSION) -
DETAILED QUESTIONS AND ANSWERS | VERIFIED
ANSWERS PLUS RATIONALES | GUARANTEED PASS |
LATEST EXAM UPDATE | EXAM PREP | STUDY GUIDE |
PRACTICE TEST
1. A community association manager is preparing the annual operating budget for a
condominium association. Which of the following expenses should be classified as a
variable expense rather than a fixed expense?
A. Master insurance policy premiums
B. Management company contract fees
C. Common element electricity and utility costs
D. Annual audit and tax preparation fees
Utility costs fluctuate based on weather patterns, usage rates, and rate adjustments, making
them variable expenses, whereas contracts and premiums represent fixed operational costs.
2. A homeowner fails to pay regular monthly assessments for over 90 days. Before initiating
formal legal collection procedures, what is the manager's primary responsibility according
to standard community association management practices?
A. Immediately file a foreclosure lawsuit in municipal court
B. Review the governing documents and follow the association's established collection
policy strictly
C. Place a padlock on the owner's assigned parking space until the balance is cleared
D. Disclose the delinquency status publicly at the next open board meeting
Managers must follow the association's formal collection policy and governing documents to
ensure due process, legal compliance, and fairness.
3. During a board of directors meeting, a director suggests discussing an ongoing lawsuit
involving a homeowner in executive session. Which matter is legally and ethically
appropriate for executive session discussion?
A. Reviewing bids for landscaping maintenance contracts
B. Discussing pending or potential litigation with association legal counsel
,C. Voting on the final approval of the annual operating budget
D. Discussing the upcoming community social committee budget
Executive sessions are legally reserved for sensitive topics such as pending litigation,
personnel issues, and owner disciplinary hearings to protect attorney-client privilege and
privacy.
4. A board member contacts the community association manager directly and demands
that the pool be closed immediately for unscheduled repairs without board authorization or
an emergency vote. What is the manager's best course of action?
A. Close the pool immediately to satisfy the individual board member's demand
B. Remind the director that individual board members lack unilateral authority and
request guidance from the full board
C. Ignore the request and pretend the conversation never happened
D. Send a mass email to all homeowners criticizing the board member's behavior
Individual board members possess no independent operational authority outside of a duly
noticed meeting; governance power rests with the board as a collective body.
5. Which of the following financial reports provides a snapshot of an association's financial
position at a specific point in time by detailing its assets, liabilities, and fund balances?
A. Income Statement
B. Balance Sheet
C. General Ledger
D. Cash Flow Statement
The balance sheet reflects the fundamental accounting equation by presenting assets,
liabilities, and equity (fund balances) as of a specific date.
6. An association's reserve study recommends replacing all asphalt roofs within five years
at an estimated cost of five hundred thousand dollars. Currently, the reserve fund has fifty
thousand dollars allocated for this project. What is the fund's percent funded ratio?
A. 10 percent
B. 25 percent
, C. 50 percent
D. 100 percent
The percent funded metric is calculated by dividing the current reserve fund balance by the
fully funded balance, which yields ten percent in this scenario.
7. A manager receives a written architectural change request from an owner wanting to
install solar panels on their roof. Where should the manager look first to determine the
architectural review procedures and criteria?
A. Local municipal zoning ordinances
B. The association's Declaration, Bylaws, and architectural guidelines
C. General real estate blogs and online forums
D. The personal preference of the board president
Governing documents and architectural guidelines establish the binding covenants,
restrictions, and procedural rules for property modifications within the community.
8. An association is soliciting bids for major painting services. Which practice represents a
conflict of interest for a community association manager?
A. Obtaining three competitive bids from independent contractors
B. Recommending a painting company owned by the manager's immediate family member
without disclosing the relationship
C. Checking references and proof of insurance for each bidding vendor
D. Distributing a standardized request for proposal to all qualified vendors
Failing to disclose personal or financial relationships with a vendor violates professional
ethics standards and fiduciary duty requirements.
9. Which of the following insurance coverages protects association directors and officers
from personal financial loss arising from wrongful acts or managerial decisions made in
good faith?
A. General Liability Insurance
B. Fidelity Bond / Crime Insurance
DETAILED QUESTIONS AND ANSWERS | VERIFIED
ANSWERS PLUS RATIONALES | GUARANTEED PASS |
LATEST EXAM UPDATE | EXAM PREP | STUDY GUIDE |
PRACTICE TEST
1. A community association manager is preparing the annual operating budget for a
condominium association. Which of the following expenses should be classified as a
variable expense rather than a fixed expense?
A. Master insurance policy premiums
B. Management company contract fees
C. Common element electricity and utility costs
D. Annual audit and tax preparation fees
Utility costs fluctuate based on weather patterns, usage rates, and rate adjustments, making
them variable expenses, whereas contracts and premiums represent fixed operational costs.
2. A homeowner fails to pay regular monthly assessments for over 90 days. Before initiating
formal legal collection procedures, what is the manager's primary responsibility according
to standard community association management practices?
A. Immediately file a foreclosure lawsuit in municipal court
B. Review the governing documents and follow the association's established collection
policy strictly
C. Place a padlock on the owner's assigned parking space until the balance is cleared
D. Disclose the delinquency status publicly at the next open board meeting
Managers must follow the association's formal collection policy and governing documents to
ensure due process, legal compliance, and fairness.
3. During a board of directors meeting, a director suggests discussing an ongoing lawsuit
involving a homeowner in executive session. Which matter is legally and ethically
appropriate for executive session discussion?
A. Reviewing bids for landscaping maintenance contracts
B. Discussing pending or potential litigation with association legal counsel
,C. Voting on the final approval of the annual operating budget
D. Discussing the upcoming community social committee budget
Executive sessions are legally reserved for sensitive topics such as pending litigation,
personnel issues, and owner disciplinary hearings to protect attorney-client privilege and
privacy.
4. A board member contacts the community association manager directly and demands
that the pool be closed immediately for unscheduled repairs without board authorization or
an emergency vote. What is the manager's best course of action?
A. Close the pool immediately to satisfy the individual board member's demand
B. Remind the director that individual board members lack unilateral authority and
request guidance from the full board
C. Ignore the request and pretend the conversation never happened
D. Send a mass email to all homeowners criticizing the board member's behavior
Individual board members possess no independent operational authority outside of a duly
noticed meeting; governance power rests with the board as a collective body.
5. Which of the following financial reports provides a snapshot of an association's financial
position at a specific point in time by detailing its assets, liabilities, and fund balances?
A. Income Statement
B. Balance Sheet
C. General Ledger
D. Cash Flow Statement
The balance sheet reflects the fundamental accounting equation by presenting assets,
liabilities, and equity (fund balances) as of a specific date.
6. An association's reserve study recommends replacing all asphalt roofs within five years
at an estimated cost of five hundred thousand dollars. Currently, the reserve fund has fifty
thousand dollars allocated for this project. What is the fund's percent funded ratio?
A. 10 percent
B. 25 percent
, C. 50 percent
D. 100 percent
The percent funded metric is calculated by dividing the current reserve fund balance by the
fully funded balance, which yields ten percent in this scenario.
7. A manager receives a written architectural change request from an owner wanting to
install solar panels on their roof. Where should the manager look first to determine the
architectural review procedures and criteria?
A. Local municipal zoning ordinances
B. The association's Declaration, Bylaws, and architectural guidelines
C. General real estate blogs and online forums
D. The personal preference of the board president
Governing documents and architectural guidelines establish the binding covenants,
restrictions, and procedural rules for property modifications within the community.
8. An association is soliciting bids for major painting services. Which practice represents a
conflict of interest for a community association manager?
A. Obtaining three competitive bids from independent contractors
B. Recommending a painting company owned by the manager's immediate family member
without disclosing the relationship
C. Checking references and proof of insurance for each bidding vendor
D. Distributing a standardized request for proposal to all qualified vendors
Failing to disclose personal or financial relationships with a vendor violates professional
ethics standards and fiduciary duty requirements.
9. Which of the following insurance coverages protects association directors and officers
from personal financial loss arising from wrongful acts or managerial decisions made in
good faith?
A. General Liability Insurance
B. Fidelity Bond / Crime Insurance
