CMCA: Financial Management
Assessment correct answersAn is the owner's financial
obligation to the community association during a given period of time -
usually one year. It covers the owner's share of the common expense.
Baseline funding correct
answers Budget correct
answers
Chart of accounts correct answersAn organized list of the titles,
descriptions, and assigned numbers of all accounts in an organization's
general ledger.
Discretionary budget line items correct answersThese are items based on
owner, board, and committee desires. They are items people would like to
have -given their values, lifestyle, and preferred level of service, e.g. social
and recreational expenses, picnic area, etc.
Expenses correct answersConsist of the cost of goods and services used
to operate and maintain the association's common elements.
FHA correct answers
FHLMC correct answers
Full funding correct
answers
Historical trend budgeting correct answersThis method begins with the
assumption that existing line items are needed. The amount of funds
allotted to each during the current year is adjusted for expected changes in
the coming year. Sources of historical information include financial reports,
existing contracts, and bills from the past year.
Mandatory budget line items correct answersThese are items based on the
community and owner needs. They are requirements that the community is
obligated to meet, e.g. income taxes, management fees, repairs, utilities,
and maintenance.
Operating budget correct answers
Operating expenses correct answersOccur on a regular basis for the normal
and usual services and repairs for the association. For example, swimming
pool management, professional and administrative serices, utilities, etc.
, Percent funded correct answers allows an association to
measure the relative size of their replacement reserves compared to a
"fully funded" reserve balance.
Reconciliation of expenses and revenue correct answers
Reserve account correct answersConsists of funds put aside -in reserve-
for the replacement of major components of a community's common
property. Typically, the
- might be used to replace asphalt paving, concrete
sidewalks, roofs, contral heating, etc.
Reserve cash flow statement correct answers shows the amount to
be funded and the amount to be expended from the replacement fund over
a given period of time.
Reserve formula correct answers
Reserve Specialist (RS) correct answersCAI established the
designation program to help community managers and board members
identify qualified reserve study providers and to assist communities in
developing their reserve study.
Reserve study correct answers is a budget planning tool
with which the association expects to offset ongoing deterioration and
prepare for inevitable future expenses.
Revenue correct answers represents the earnings of
the community association.
Special assessment correct answersA is a onetime
assessment often voted on by the owners to cover a major expense that
was not included in the annual budget or replacement reserve.
Threshold funding correct answers
Zero-base budgeting correct answersWith this method, all line items are set
to zero and the amount of funds allotted to each must be justified.
Acceleration correct answers is the collection of all assessments
due through the end of the fiscal year. For example, if an owner's payments
for the annual calendar year assessment are due monthly and become
delinquent at the end of March, all monthly payments through December of
that year are due immediately. Usually, if
is not authorized in state statutes or the association's
governing documents, it cannot be implemented by board resolution.
Bad debt write-off correct answersA payment that cannot be collected from
an owner is called a bad debt. When a community association determines
that a debt cannot be
Assessment correct answersAn is the owner's financial
obligation to the community association during a given period of time -
usually one year. It covers the owner's share of the common expense.
Baseline funding correct
answers Budget correct
answers
Chart of accounts correct answersAn organized list of the titles,
descriptions, and assigned numbers of all accounts in an organization's
general ledger.
Discretionary budget line items correct answersThese are items based on
owner, board, and committee desires. They are items people would like to
have -given their values, lifestyle, and preferred level of service, e.g. social
and recreational expenses, picnic area, etc.
Expenses correct answersConsist of the cost of goods and services used
to operate and maintain the association's common elements.
FHA correct answers
FHLMC correct answers
Full funding correct
answers
Historical trend budgeting correct answersThis method begins with the
assumption that existing line items are needed. The amount of funds
allotted to each during the current year is adjusted for expected changes in
the coming year. Sources of historical information include financial reports,
existing contracts, and bills from the past year.
Mandatory budget line items correct answersThese are items based on the
community and owner needs. They are requirements that the community is
obligated to meet, e.g. income taxes, management fees, repairs, utilities,
and maintenance.
Operating budget correct answers
Operating expenses correct answersOccur on a regular basis for the normal
and usual services and repairs for the association. For example, swimming
pool management, professional and administrative serices, utilities, etc.
, Percent funded correct answers allows an association to
measure the relative size of their replacement reserves compared to a
"fully funded" reserve balance.
Reconciliation of expenses and revenue correct answers
Reserve account correct answersConsists of funds put aside -in reserve-
for the replacement of major components of a community's common
property. Typically, the
- might be used to replace asphalt paving, concrete
sidewalks, roofs, contral heating, etc.
Reserve cash flow statement correct answers shows the amount to
be funded and the amount to be expended from the replacement fund over
a given period of time.
Reserve formula correct answers
Reserve Specialist (RS) correct answersCAI established the
designation program to help community managers and board members
identify qualified reserve study providers and to assist communities in
developing their reserve study.
Reserve study correct answers is a budget planning tool
with which the association expects to offset ongoing deterioration and
prepare for inevitable future expenses.
Revenue correct answers represents the earnings of
the community association.
Special assessment correct answersA is a onetime
assessment often voted on by the owners to cover a major expense that
was not included in the annual budget or replacement reserve.
Threshold funding correct answers
Zero-base budgeting correct answersWith this method, all line items are set
to zero and the amount of funds allotted to each must be justified.
Acceleration correct answers is the collection of all assessments
due through the end of the fiscal year. For example, if an owner's payments
for the annual calendar year assessment are due monthly and become
delinquent at the end of March, all monthly payments through December of
that year are due immediately. Usually, if
is not authorized in state statutes or the association's
governing documents, it cannot be implemented by board resolution.
Bad debt write-off correct answersA payment that cannot be collected from
an owner is called a bad debt. When a community association determines
that a debt cannot be
