CMCA Practice Exam Questions and Answers | Latest Version | 2025/2026 | Correct & Verified

CMCA Practice Exam Questions and Answers | Latest Version | 2025/2026 | Correct & Verified What is the primary responsibility of a community association manager? A. Drafting legislation B. Marketing properties for sale C. Enforcing HOA rules and managing operations D. Performing landscaping Which financial statement shows a community’s revenues and expenses over a period of time? A. Balance sheet B. Income statement C. Statement of cash flows D. Audit report Which budgeting method involves using last year’s budget as a base and adjusting for changes? A. Zero-based budgeting B. Incremental budgeting 2 C. Flexible budgeting D. Performance budgeting What is the purpose of a reserve fund in community management? A. To fund social events B. To pay salaries C. To cover long-term capital repairs and replacements D. To reduce monthly fees Which type of insurance is typically required for a condominium association? A. Life insurance B. Commercial property insurance C. Health insurance D. Auto insurance What is the main function of a governing board in a community association? A. Performing daily maintenance B. Managing individual units 3 C. Establishing policies and overseeing operations D. Conducting real estate transactions Which of the following is considered a capital expenditure? A. Monthly cleaning service B. Painting a common hallway C. Electricity bills D. Office supplies How often must financial statements typically be prepared for review by the board? A. Daily B. Monthly C. Annually D. Every five years Which document outlines the rules and regulations for residents of a community? A. Meeting minutes B. Governing documents 4 C. Audit report D. Insurance policy What is the key benefit of performing a reserve study? A. Determines monthly dues B. Identifies long-term repair and replacement needs C. Improves landscaping D. Reduces property taxes Which type of meeting requires advance notice and a quorum to conduct official business? A. Informal discussion B. Board meeting C. Social gathering D. Staff meeting