Random CMCA Practice
Which of the following is a common management control for ensuring
maintenance work is performed in a timely manner?
A. A purchase order system
B. An equipment warranties
C. A work order/response form
D.A contractor's invoice correct answersC. A work order/response form -
A, B, and D speak to elements OTHER than a control to ensure
maintenance work is completed.
The primary management control tool for identifying whether the
association needs to maintain a particular property element is:
E. Physical inspections
F. Association bylaws
G. Maintenance responsibility chart
H.Community asset inventory correct answersC. Maintenance
responsibility chart along, with the governing documents, defines
parameters of association maintenance responsibility.
The other answers have no bearing on necessity of maintenance or
maintenance responsibility.
In what type of a contract would a waiver of lien by recommended?
I. Repair of the HVAC system
J. Re-roofing the buildings
K. Repair of the pool pump
L.Annual tree pruning correct answersB. Re-roofing the buildings - Large
contracts involving significant material purchase and/or use of sub-
contractors commonly include lien waivers and should be recommended to
the board.
A, C, and D typically do not include significant material purchases or the
use of sub- contractors so a waiver of lien is not necessary.
What does "Co-Insurance" obligate the Association to do?
M.Pay the deductible
N. Maintain certain limits of insurance
O. Cover the depreciated value of all association buildings
,D. Provide insurance for homeowners correct answersB. Maintain certain
limits of insurance - Co-insurance seeks to the limits of insurance in place
at the time of a loss and speaks to insurance obligation for the parties
involved in the claim.
When an association contracts out all of its services and has no employees,
it is a best business practice to:
A. Negotiate contracts within the bidding process.
B. Purchase employment practices liability insurance.
C. Assume the contractors carry their own insurance coverage.
D. Increase the coverage under the D&O insurance policy. correct answersA.
Negotiate contracts within the bidding process.
If an owner fails to receive notice of a meeting, the association is not
responsible if the owner:
A. Did not notify association of their current address.
B. Does not usually attend the meetings.
C. Already signed the petition to call the meeting.
D. Shares title with multiple owners. correct answersA. Did not notify
association of their current address. It is the owner's responsibility to provide
current contact information to Management.
What is the primary source of requirements when developing the
association's annual maintenance budget?
A. Governing documents
B. State law
C. Annual audit
D. Reserve Study correct answersA. Governing documents
The best reasoning for recommending the modified accrual accounting
method is that, compared to cash accounting, it:
A. Will make future audit work more accurate.
B. More accurately reflects the association's financial condition.
C. Is more easily understood by board members.
D. Can be accomplishment more quickly. correct answersB. More accurately
reflects the association's financial condition. Under the modified accrual
basis, also sometimes referred to as modified cash basis, some accounts,
such as assessment income, are maintained on the accrual basis and other
accounts, such as interest or other miscellaneous income accounts, and
some expenses, such as miscellaneous repairs, are maintained on a cash
basis. The accrual of major expenses in particular, such as a contract for
landscaping, trash removal, etc., regardless of non-receipt invoices, gives
the read a much more accurate depiction of the association's financial
standing, as the
, accruals serve to alert the reader to recognition of obligations that the
association must meet.
TRUE OR FALSE:
The basic authority in a community association lies with the
developer. correct answersFALSE
The board of directors in a community association has a to act in
the best interests and for the benefit of the community as a whole.
a. bond
b. fiduciary duty
c. ballot
d. quorum correct answersb. fiduciary duty
When developing a rule, it must be consistent with:
A. Fine schedules as approved by the courts
B. Board recommendations and resolutions
C. Guidelines established within the governing documents
D.Applicable statues and governing documents correct answersD.
Applicable statues and governing documents. Rules cannot conflict with
statues and governing documents.
In an initial letter you send to an owner who has violated one of the
association's adopted rules, which of the following is included?
A. The amount of fine assessed.
B. Steps to amend the rules.
C. The offer to meet to hear the owner's viewpoint.
D.What the outcome of similar cases has been. correct answersC. The
offer to meet to hear the owner's viewpoint. Best way to get compliance is
to let owner be heard and explain rule to the owner. Knowledge Tested:
Successful rule enforcement Procedures.
If the governing documents and laws present conflicting notice periods,
follow:
a. The bylaws
b. State laws
c. Your attorney's advice
d. Declarations correct answersb. State laws -
Which of the following is a duty of a manager attending a board meeting?
a. Call the meeting to order.
b. Establish the agenda.
c. Take the minutes of the meeting.
Which of the following is a common management control for ensuring
maintenance work is performed in a timely manner?
A. A purchase order system
B. An equipment warranties
C. A work order/response form
D.A contractor's invoice correct answersC. A work order/response form -
A, B, and D speak to elements OTHER than a control to ensure
maintenance work is completed.
The primary management control tool for identifying whether the
association needs to maintain a particular property element is:
E. Physical inspections
F. Association bylaws
G. Maintenance responsibility chart
H.Community asset inventory correct answersC. Maintenance
responsibility chart along, with the governing documents, defines
parameters of association maintenance responsibility.
The other answers have no bearing on necessity of maintenance or
maintenance responsibility.
In what type of a contract would a waiver of lien by recommended?
I. Repair of the HVAC system
J. Re-roofing the buildings
K. Repair of the pool pump
L.Annual tree pruning correct answersB. Re-roofing the buildings - Large
contracts involving significant material purchase and/or use of sub-
contractors commonly include lien waivers and should be recommended to
the board.
A, C, and D typically do not include significant material purchases or the
use of sub- contractors so a waiver of lien is not necessary.
What does "Co-Insurance" obligate the Association to do?
M.Pay the deductible
N. Maintain certain limits of insurance
O. Cover the depreciated value of all association buildings
,D. Provide insurance for homeowners correct answersB. Maintain certain
limits of insurance - Co-insurance seeks to the limits of insurance in place
at the time of a loss and speaks to insurance obligation for the parties
involved in the claim.
When an association contracts out all of its services and has no employees,
it is a best business practice to:
A. Negotiate contracts within the bidding process.
B. Purchase employment practices liability insurance.
C. Assume the contractors carry their own insurance coverage.
D. Increase the coverage under the D&O insurance policy. correct answersA.
Negotiate contracts within the bidding process.
If an owner fails to receive notice of a meeting, the association is not
responsible if the owner:
A. Did not notify association of their current address.
B. Does not usually attend the meetings.
C. Already signed the petition to call the meeting.
D. Shares title with multiple owners. correct answersA. Did not notify
association of their current address. It is the owner's responsibility to provide
current contact information to Management.
What is the primary source of requirements when developing the
association's annual maintenance budget?
A. Governing documents
B. State law
C. Annual audit
D. Reserve Study correct answersA. Governing documents
The best reasoning for recommending the modified accrual accounting
method is that, compared to cash accounting, it:
A. Will make future audit work more accurate.
B. More accurately reflects the association's financial condition.
C. Is more easily understood by board members.
D. Can be accomplishment more quickly. correct answersB. More accurately
reflects the association's financial condition. Under the modified accrual
basis, also sometimes referred to as modified cash basis, some accounts,
such as assessment income, are maintained on the accrual basis and other
accounts, such as interest or other miscellaneous income accounts, and
some expenses, such as miscellaneous repairs, are maintained on a cash
basis. The accrual of major expenses in particular, such as a contract for
landscaping, trash removal, etc., regardless of non-receipt invoices, gives
the read a much more accurate depiction of the association's financial
standing, as the
, accruals serve to alert the reader to recognition of obligations that the
association must meet.
TRUE OR FALSE:
The basic authority in a community association lies with the
developer. correct answersFALSE
The board of directors in a community association has a to act in
the best interests and for the benefit of the community as a whole.
a. bond
b. fiduciary duty
c. ballot
d. quorum correct answersb. fiduciary duty
When developing a rule, it must be consistent with:
A. Fine schedules as approved by the courts
B. Board recommendations and resolutions
C. Guidelines established within the governing documents
D.Applicable statues and governing documents correct answersD.
Applicable statues and governing documents. Rules cannot conflict with
statues and governing documents.
In an initial letter you send to an owner who has violated one of the
association's adopted rules, which of the following is included?
A. The amount of fine assessed.
B. Steps to amend the rules.
C. The offer to meet to hear the owner's viewpoint.
D.What the outcome of similar cases has been. correct answersC. The
offer to meet to hear the owner's viewpoint. Best way to get compliance is
to let owner be heard and explain rule to the owner. Knowledge Tested:
Successful rule enforcement Procedures.
If the governing documents and laws present conflicting notice periods,
follow:
a. The bylaws
b. State laws
c. Your attorney's advice
d. Declarations correct answersb. State laws -
Which of the following is a duty of a manager attending a board meeting?
a. Call the meeting to order.
b. Establish the agenda.
c. Take the minutes of the meeting.
