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CMCA EXAM 2025/2026 REAL EXAM 280 QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS) A+GRADE
Ballot - ......ANSWER........a device used to record choices made by voters; each voter uses
one and are not shared
Based on which type of requirements would you choose a contractor over the association
to complete work? - ......ANSWER........requires supervision, expertise required and low
urgency
Baseline funding - ......ANSWER........the goal of this strategy is to keep the reserve cash
balance above zero
Before the commencement of any services and repairs, the association should:
- ......ANSWER........compare three or more bids
Bid request - ......ANSWER........Also known as request for proposal (RFP), this is an
announcement that an organization is interested in receiving proposals for a particular
project
Bid specifications - ......ANSWER........detailed instructions about the products or services
requested through the bid request; all contract terms should be included in the bid request
Board liaison system - ......ANSWER........directors are assigned to certain committees to
guide the committee on Board policy and procedures and to report back to the Board;
directors serving must distinguish their role from the role of the committee chairperson
Business judgement rule - ......ANSWER........if a board has exercised reasonable decision
making, the court will generally not consider the board negligent in its fiduciary duty, nor
will the court substitute its judgment for that of the board; however, the board must
demonstrate how it has taken care in reaching a decision; it is up to the court to decide if
the board has been reasonable
Bylaws - ......ANSWER........formally adopted governing regulations for the administration
and management of a community association
Cash basis of accounting - ......ANSWER........method of recording income when it is
collected and expenses when they are paid
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CC&Rs (Covenants, Conditions & Restrictions) - ......ANSWER........the governing
documents that dictate how the homeowners association operates and what rules the
owners—and their tenants and guests —must obey; these legal documents might also be
called the bylaws, the master deed, the houses rules or another name and are legally
enforceable by the homeowners association, unless a specific provision conflicts with
federal, state or local laws
Certificate of deposit - ......ANSWER........when reinvested together with its accumulated
interest, the ultimate yield will be higher than the stated rate of interest
Chapter 11 bankruptcy - ......ANSWER........called a reorganization because it is designed
to allow for an orderly payment to creditors that enable a corporation to continue
Chapter 13 bankruptcy - ......ANSWER........used to reorganize personal or non-corporate
debt; a plan is submitted to a judge for paying off all or nearly all the debt over a specified
period
Chapter 7 bankruptcy - ......ANSWER........called straight bankruptcy or liquidation, it
involves the prompt conversion of all the individual's or corporation's non-exempt property
to cash, and payment of creditors to the extent possible
Chart of accounts - ......ANSWER........an organized list of titles, descriptions and assigned
numbers of all categories in an organization's general ledger; the assigned number helps
you locate the account, and the title describes the category
Coinsurance - ......ANSWER........a standard element in most property policies that
obligates the insured to maintain certain limit of property insurance based on a stated
percentage
Commercial reporting method - ......ANSWER........combines operating and reserve
activities in the same column, as opposed to fund reporting, which consists of preparing
separate columns for operating, reserve and any special fund
Committee report - ......ANSWER........highlight matters to be decided and
recommendations to the board; the actions suggested to the board are clearly stated and
should follow a standard format
Common declarations - ......ANSWER........this section of the insurance policy is like the
title page of a book; it typically includes such information as the name and address of the
insured and the period of coverage
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Common Interest Developments do not have to file federal income taxes.
- ......ANSWER........FALSE
Common policy conditions - ......ANSWER........these are the basic provisions that apply to
all insurance coverages in the package (e.g., when to file proof of a loss or what happens
when a premium is not paid)
Community association - ......ANSWER........a group of owners who wish to provide a
communal basis for preserving, maintaining, and enhancing their homes and property
Community association governing documents and state statutes may require who to be
involved in preparing annual reports? - ......ANSWER........a CPA
Compilation - ......ANSWER........a presentation of financial statements by a CPA without
the assurance that the information conforms to GAAP (Generally Accepted Accounting
Principles)
Condominium - ......ANSWER........a living unit fully owned by an individual with an
undivided interest in the common elements of the community; the community association
itself owns no real estate as an association
Contingent liability - ......ANSWER........covers the value of any undamaged portion of a
building which may have to be replaced because of building laws
Contract - ......ANSWER........an agreement between two or more parties—enforceable by
law—by which each party promises to do, or not to do, something
Contractual transfers - ......ANSWER........this involves entering a contract that will, among
other things, transfer the community association's legal responsibility for any loss
Cooperative - ......ANSWER........wherein an individual owns stock or membership and
holds a proprietary lease or occupancy agreement for his or her living unit
CPA - ......ANSWER........an accountant who has passed certain examinations and met
statutory and licensing requirements of a US state
Cross liability - ......ANSWER........allows an owner to bring a claim against his or her
community association; this coverage is in the owner's interest—it is standard for owners
to be insured in this coverage for condominiums and cooperatives, while planned
communities must see to it that this concept is present in their coverage
CMCA EXAM 2025/2026 REAL EXAM 280 QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS) A+GRADE
Ballot - ......ANSWER........a device used to record choices made by voters; each voter uses
one and are not shared
Based on which type of requirements would you choose a contractor over the association
to complete work? - ......ANSWER........requires supervision, expertise required and low
urgency
Baseline funding - ......ANSWER........the goal of this strategy is to keep the reserve cash
balance above zero
Before the commencement of any services and repairs, the association should:
- ......ANSWER........compare three or more bids
Bid request - ......ANSWER........Also known as request for proposal (RFP), this is an
announcement that an organization is interested in receiving proposals for a particular
project
Bid specifications - ......ANSWER........detailed instructions about the products or services
requested through the bid request; all contract terms should be included in the bid request
Board liaison system - ......ANSWER........directors are assigned to certain committees to
guide the committee on Board policy and procedures and to report back to the Board;
directors serving must distinguish their role from the role of the committee chairperson
Business judgement rule - ......ANSWER........if a board has exercised reasonable decision
making, the court will generally not consider the board negligent in its fiduciary duty, nor
will the court substitute its judgment for that of the board; however, the board must
demonstrate how it has taken care in reaching a decision; it is up to the court to decide if
the board has been reasonable
Bylaws - ......ANSWER........formally adopted governing regulations for the administration
and management of a community association
Cash basis of accounting - ......ANSWER........method of recording income when it is
collected and expenses when they are paid
,2 of 24
CC&Rs (Covenants, Conditions & Restrictions) - ......ANSWER........the governing
documents that dictate how the homeowners association operates and what rules the
owners—and their tenants and guests —must obey; these legal documents might also be
called the bylaws, the master deed, the houses rules or another name and are legally
enforceable by the homeowners association, unless a specific provision conflicts with
federal, state or local laws
Certificate of deposit - ......ANSWER........when reinvested together with its accumulated
interest, the ultimate yield will be higher than the stated rate of interest
Chapter 11 bankruptcy - ......ANSWER........called a reorganization because it is designed
to allow for an orderly payment to creditors that enable a corporation to continue
Chapter 13 bankruptcy - ......ANSWER........used to reorganize personal or non-corporate
debt; a plan is submitted to a judge for paying off all or nearly all the debt over a specified
period
Chapter 7 bankruptcy - ......ANSWER........called straight bankruptcy or liquidation, it
involves the prompt conversion of all the individual's or corporation's non-exempt property
to cash, and payment of creditors to the extent possible
Chart of accounts - ......ANSWER........an organized list of titles, descriptions and assigned
numbers of all categories in an organization's general ledger; the assigned number helps
you locate the account, and the title describes the category
Coinsurance - ......ANSWER........a standard element in most property policies that
obligates the insured to maintain certain limit of property insurance based on a stated
percentage
Commercial reporting method - ......ANSWER........combines operating and reserve
activities in the same column, as opposed to fund reporting, which consists of preparing
separate columns for operating, reserve and any special fund
Committee report - ......ANSWER........highlight matters to be decided and
recommendations to the board; the actions suggested to the board are clearly stated and
should follow a standard format
Common declarations - ......ANSWER........this section of the insurance policy is like the
title page of a book; it typically includes such information as the name and address of the
insured and the period of coverage
, 3 of 24
Common Interest Developments do not have to file federal income taxes.
- ......ANSWER........FALSE
Common policy conditions - ......ANSWER........these are the basic provisions that apply to
all insurance coverages in the package (e.g., when to file proof of a loss or what happens
when a premium is not paid)
Community association - ......ANSWER........a group of owners who wish to provide a
communal basis for preserving, maintaining, and enhancing their homes and property
Community association governing documents and state statutes may require who to be
involved in preparing annual reports? - ......ANSWER........a CPA
Compilation - ......ANSWER........a presentation of financial statements by a CPA without
the assurance that the information conforms to GAAP (Generally Accepted Accounting
Principles)
Condominium - ......ANSWER........a living unit fully owned by an individual with an
undivided interest in the common elements of the community; the community association
itself owns no real estate as an association
Contingent liability - ......ANSWER........covers the value of any undamaged portion of a
building which may have to be replaced because of building laws
Contract - ......ANSWER........an agreement between two or more parties—enforceable by
law—by which each party promises to do, or not to do, something
Contractual transfers - ......ANSWER........this involves entering a contract that will, among
other things, transfer the community association's legal responsibility for any loss
Cooperative - ......ANSWER........wherein an individual owns stock or membership and
holds a proprietary lease or occupancy agreement for his or her living unit
CPA - ......ANSWER........an accountant who has passed certain examinations and met
statutory and licensing requirements of a US state
Cross liability - ......ANSWER........allows an owner to bring a claim against his or her
community association; this coverage is in the owner's interest—it is standard for owners
to be insured in this coverage for condominiums and cooperatives, while planned
communities must see to it that this concept is present in their coverage
