CMCA - M100 FINAL EXAM
UPDATED 2025/2026 COMPLETE
QUESTIONS WITH CORRECT
DETAILED ANSWERS AND
RATIONALES || 100%
GUARANTEED PASS||<<LATEST
VERSION>>
Certificate of deposit (CD) - ANSWER ✓ CDs are an investment option for
community associations seeking to generate additional revenue over time. When a
CD is reinvested together with its accumulated interest, the ultimate yield will be
higher than the stated rate of interest.
Certificate of insurance - ANSWER ✓ A document issued by an insurance
company/broker that is used to verify the existence of insurance coverage under
specific conditions granted to listed individuals. More specifically, the document
lists the effective date of the policy, the type of insurance coverage purchased, and
the types and dollar amount of applicable liability.
Chapter 11 bankruptcy - ANSWER ✓ Chapter 11 bankruptcy is called a re-
organization because it is designed to allow for an orderly payment to creditors
while enabling a corporation to continue to operate. Chapter 11 involves the
development of a plan to pay off debts in a timely manner. Once a judge approves
a plan as "fair and equitable," it is binding and discharges all debts not provided for
under the plan. Creditors usually eventually receive more of what they are owed
under a Chapter 11 than a Chapter 7. However, they don't necessarily receive all
they are owed.
Chapter 13 bankruptcy - ANSWER ✓ Chapter 13 is used to reorganize personal or
noncorporate debt. A plan is submitted to a judge for paying off all or some of the
debt over a specified period of time while waiving other debt that may have been
,incurred prior to filing for bankruptcy. Chapter 13 establishes a payment plan
detailing the amount that must be paid and the time period for repaying it.
Creditors do not have to agree to the plan. As with Chapter 11, a creditor has more
of a chance of eventually being repaid under Chapter 13 than Chapter 7
Chapter 7 bankruptcy - ANSWER ✓ Chapter 7 is called straight bankruptcy or
liquidation. It involves the: • Prompt conversion of all the individual's or
corporation's non-exempt property to cash • Payment of creditors to the extent
possible The law establishes the order in which creditors are paid, and the
percentage of debt that is paid. Where the community association is in the order of
creditors will affect whether it is paid what is owed and, if so, how much.
Typically, an association receives nothing or a very small percentage of the amount
it is owed when an owner files Chapter 7.
Fair Debt Collection Practices Act (FDCPA) - ANSWER ✓ specifies what a
collection source may and may not do when pursuing payment of past due
accounts. specifically a written notice must be received
HO-4 - ANSWER ✓ a tenants insurance policy
Full Funding - ANSWER ✓ The goal of this funding strategy is to attain and
maintain the reserves at or near 100 percent as called for on the component
inventory.
HO-6 - ANSWER ✓ condominium owners ir cooperative owners
Fund reporting method - ANSWER ✓ Consists of preparing separate columns for
operating, reserve, and any special funds.
indemnification - ANSWER ✓ to exempt someone from claims made against
them
Generally Accepted Accounting Principles (GAAP) - ANSWER ✓ a set of
accounting standards that is used in the preparation of financial statements
Governing Documents - ANSWER ✓ The rules of the organization. They include
federal law, state law, corporate charter, articles of incorporation, constitution,
bylaws, rules of order, standing rules, and policies and procedures.
,governing law provision - ANSWER ✓ one of 6 legally binding contract
provisions that states the law of a particular state will be applied if there are any
disputes after the contract is signed
hierarchy of authority - ANSWER ✓ state the rules and architectural guidelines
may not contradict or be in conflict with the legal sources that take precedence
over then.
Ho-4 - ANSWER ✓ renters insurance
HO-6 - ANSWER ✓ condominium owners
Major improvement expenses - ANSWER ✓ Consist of items that are not
necessarily required, but are added to improve the overall welfare, safety or life of
the residents - or to enhance the value of the community association as reflected in
the resale value of units.
Master association - ANSWER ✓ An umbrella association that provides
management services and decision-making functions to smaller condominiums.
Members' equity - ANSWER ✓ the difference between the community
associations assets and liabilities. also called the fund balance
modification provision - ANSWER ✓ This provision states that the contract may
not be modified in any way unless such modification is written and signed by both
parties.
modified cash basis - ANSWER ✓ A method of accounting that combines aspects
of the cash and accrual methods. It uses the cash basis for recording revenues and
most expenses. Exceptions are made when cash is paid for assets with useful lives
greater than one accounting period.
segregation of exposure - ANSWER ✓ a way to control risk that involves
duplicatoomor separation of property exposures to loss
planned community - ANSWER ✓ a community where the owner owns his
lot/unit and the community owns common areas
, 3 types of resolutions - ANSWER ✓ administrative, policy and special
Policy resolution - ANSWER ✓ policies that impact the rights and responsibilities
of community members
administrative resolution - ANSWER ✓ focuses on inner workings of the board.
special resolution - ANSWER ✓ used when creating a new rule or policy.
typically regarding individual situations
public offerings statement - ANSWER ✓ a statement from the developer that
contains all material facts about the property for sale.
Governing Documents - ANSWER ✓ The rules of the organization. They include
federal law, state law, corporate charter, articles of incorporation, constitution,
bylaws, rules of order, standing rules, and policies and procedures.
what is typically included in the governing documents? - ANSWER ✓ articles of
incorporation, bylaws, declaration covenants and ccrs and public offerings
statement
3 characteristics of a community association - ANSWER ✓ mandatory
membership, mutually binding documents, and lien based assessments qq
what is the purpose of a community association? - ANSWER ✓ provide for the
community, governance and business
Resolution - ANSWER ✓ a motion that follows a set format and is formally
adopted by the board of directors
the purpose of governing documents? - ANSWER ✓ to provide for legal structure
and operation of the community
specific statute - ANSWER ✓ applies to 1 or more types of community
associations
UPDATED 2025/2026 COMPLETE
QUESTIONS WITH CORRECT
DETAILED ANSWERS AND
RATIONALES || 100%
GUARANTEED PASS||<<LATEST
VERSION>>
Certificate of deposit (CD) - ANSWER ✓ CDs are an investment option for
community associations seeking to generate additional revenue over time. When a
CD is reinvested together with its accumulated interest, the ultimate yield will be
higher than the stated rate of interest.
Certificate of insurance - ANSWER ✓ A document issued by an insurance
company/broker that is used to verify the existence of insurance coverage under
specific conditions granted to listed individuals. More specifically, the document
lists the effective date of the policy, the type of insurance coverage purchased, and
the types and dollar amount of applicable liability.
Chapter 11 bankruptcy - ANSWER ✓ Chapter 11 bankruptcy is called a re-
organization because it is designed to allow for an orderly payment to creditors
while enabling a corporation to continue to operate. Chapter 11 involves the
development of a plan to pay off debts in a timely manner. Once a judge approves
a plan as "fair and equitable," it is binding and discharges all debts not provided for
under the plan. Creditors usually eventually receive more of what they are owed
under a Chapter 11 than a Chapter 7. However, they don't necessarily receive all
they are owed.
Chapter 13 bankruptcy - ANSWER ✓ Chapter 13 is used to reorganize personal or
noncorporate debt. A plan is submitted to a judge for paying off all or some of the
debt over a specified period of time while waiving other debt that may have been
,incurred prior to filing for bankruptcy. Chapter 13 establishes a payment plan
detailing the amount that must be paid and the time period for repaying it.
Creditors do not have to agree to the plan. As with Chapter 11, a creditor has more
of a chance of eventually being repaid under Chapter 13 than Chapter 7
Chapter 7 bankruptcy - ANSWER ✓ Chapter 7 is called straight bankruptcy or
liquidation. It involves the: • Prompt conversion of all the individual's or
corporation's non-exempt property to cash • Payment of creditors to the extent
possible The law establishes the order in which creditors are paid, and the
percentage of debt that is paid. Where the community association is in the order of
creditors will affect whether it is paid what is owed and, if so, how much.
Typically, an association receives nothing or a very small percentage of the amount
it is owed when an owner files Chapter 7.
Fair Debt Collection Practices Act (FDCPA) - ANSWER ✓ specifies what a
collection source may and may not do when pursuing payment of past due
accounts. specifically a written notice must be received
HO-4 - ANSWER ✓ a tenants insurance policy
Full Funding - ANSWER ✓ The goal of this funding strategy is to attain and
maintain the reserves at or near 100 percent as called for on the component
inventory.
HO-6 - ANSWER ✓ condominium owners ir cooperative owners
Fund reporting method - ANSWER ✓ Consists of preparing separate columns for
operating, reserve, and any special funds.
indemnification - ANSWER ✓ to exempt someone from claims made against
them
Generally Accepted Accounting Principles (GAAP) - ANSWER ✓ a set of
accounting standards that is used in the preparation of financial statements
Governing Documents - ANSWER ✓ The rules of the organization. They include
federal law, state law, corporate charter, articles of incorporation, constitution,
bylaws, rules of order, standing rules, and policies and procedures.
,governing law provision - ANSWER ✓ one of 6 legally binding contract
provisions that states the law of a particular state will be applied if there are any
disputes after the contract is signed
hierarchy of authority - ANSWER ✓ state the rules and architectural guidelines
may not contradict or be in conflict with the legal sources that take precedence
over then.
Ho-4 - ANSWER ✓ renters insurance
HO-6 - ANSWER ✓ condominium owners
Major improvement expenses - ANSWER ✓ Consist of items that are not
necessarily required, but are added to improve the overall welfare, safety or life of
the residents - or to enhance the value of the community association as reflected in
the resale value of units.
Master association - ANSWER ✓ An umbrella association that provides
management services and decision-making functions to smaller condominiums.
Members' equity - ANSWER ✓ the difference between the community
associations assets and liabilities. also called the fund balance
modification provision - ANSWER ✓ This provision states that the contract may
not be modified in any way unless such modification is written and signed by both
parties.
modified cash basis - ANSWER ✓ A method of accounting that combines aspects
of the cash and accrual methods. It uses the cash basis for recording revenues and
most expenses. Exceptions are made when cash is paid for assets with useful lives
greater than one accounting period.
segregation of exposure - ANSWER ✓ a way to control risk that involves
duplicatoomor separation of property exposures to loss
planned community - ANSWER ✓ a community where the owner owns his
lot/unit and the community owns common areas
, 3 types of resolutions - ANSWER ✓ administrative, policy and special
Policy resolution - ANSWER ✓ policies that impact the rights and responsibilities
of community members
administrative resolution - ANSWER ✓ focuses on inner workings of the board.
special resolution - ANSWER ✓ used when creating a new rule or policy.
typically regarding individual situations
public offerings statement - ANSWER ✓ a statement from the developer that
contains all material facts about the property for sale.
Governing Documents - ANSWER ✓ The rules of the organization. They include
federal law, state law, corporate charter, articles of incorporation, constitution,
bylaws, rules of order, standing rules, and policies and procedures.
what is typically included in the governing documents? - ANSWER ✓ articles of
incorporation, bylaws, declaration covenants and ccrs and public offerings
statement
3 characteristics of a community association - ANSWER ✓ mandatory
membership, mutually binding documents, and lien based assessments qq
what is the purpose of a community association? - ANSWER ✓ provide for the
community, governance and business
Resolution - ANSWER ✓ a motion that follows a set format and is formally
adopted by the board of directors
the purpose of governing documents? - ANSWER ✓ to provide for legal structure
and operation of the community
specific statute - ANSWER ✓ applies to 1 or more types of community
associations
