C O M M U N I T Y A S S O C I AT I O N M A N A G E R S I N T E R N AT I O N A L C E R T I F I C AT I O N
BOARD (CAMICB)
CMCA Practice Exam
Comprehensive Practice Questions with Detailed Rationales
Certified Manager of Community Associations — 120 Practice Questions
Edition 1 · July 2026 · 120 Practice Questions
✓ Institution Verified: Community Association Managers International Certification Board (CAMICB) — CMCA
Certification Examination
Table of Contents
1. Instructions for Use 2
2. Practice Questions with Answers & Rationales 2
,CMCA · CAMICB Page 1
,CMCA PRACTICE EXAM INSTRUCTIONS & PRACTICE QUESTIONS
How to Use This Guide
Read each stem, choose your answer, then check the rationale directly below it. The correct
option is marked, and each wrong option is explained so you understand why it's wrong — not
just that it is. This guide contains 120 practice questions covering key content areas for the
CMCA (Certified Manager of Community Associations) Certification Examination.
Category: Comprehensive CMCA Exam Review
1 Community association managers must be familiar with federal income tax
requirements and options because:
A The IRS will intermittently interview the manager concerning tax filing status.
B States require managers to be knowledgeable in this area of community association
finance.
C Under federal tax code, all organizations are taxable on their income unless
specifically exempted.
D The accountant will require input from the community association when the tax
return is prepared.
Why C is correct: Community association managers must be familiar with Federal income
tax requirements and options because under federal tax code, all organizations are taxable
on their income unless specifically exempted. Community associations may qualify for tax-
exempt status under Section 528 of the Internal Revenue Code, but managers need to
understand the requirements and options available. IRS interviews are not a regular
occurrence, state requirements vary, and while accountants need input, this is not the
primary reason for manager familiarity.
A — IRS interviews are not a regular occurrence for managers.
B — State requirements vary and are not the primary reason for familiarity.
D — While accountants need input, this is not the primary reason for manager familiarity.
, 2 Which of the following is a guarantee by a surety to protect the association if a
contractor fails to perform or finish their work?
A Payment Bond.
B Performance Bond.
C Third Party Insurance.
D Fidelity Insurance.
Why B is correct: A performance bond is a guarantee by a surety company that protects
the association if a contractor fails to perform or complete their work according to the
contract specifications. A payment bond guarantees payment to subcontractors and
suppliers. Third-party insurance and fidelity insurance serve different purposes.
A — A payment bond guarantees payment to subcontractors and suppliers.
C — Third-party insurance covers liability claims, not contractor performance.
D — Fidelity insurance covers employee dishonesty, not contractor performance.
3 If you want to know the difference between actual and budget figures for a revenue
account, to which documents should you refer?
A Balance Sheet and Budget.
B Statement of Cash Flow and Budget.
C Statement of Profit and Loss.
D Statement of Income and Expenses and Budget.
Why D is correct: To know the difference between actual and budget figures for a revenue
account, you should refer to the Statement of Income and Expenses and the Budget. The
Statement of Income and Expenses shows actual revenues, while the budget shows planned
revenues. Comparing the two identifies variances. The balance sheet, cash flow statement,
and profit and loss statement serve different purposes.
A — The balance sheet shows financial position, not revenue variances.
B — The cash flow statement shows cash movements, not revenue variances.
C — The profit and loss statement is another name for income statement but does not
include the budget.
BOARD (CAMICB)
CMCA Practice Exam
Comprehensive Practice Questions with Detailed Rationales
Certified Manager of Community Associations — 120 Practice Questions
Edition 1 · July 2026 · 120 Practice Questions
✓ Institution Verified: Community Association Managers International Certification Board (CAMICB) — CMCA
Certification Examination
Table of Contents
1. Instructions for Use 2
2. Practice Questions with Answers & Rationales 2
,CMCA · CAMICB Page 1
,CMCA PRACTICE EXAM INSTRUCTIONS & PRACTICE QUESTIONS
How to Use This Guide
Read each stem, choose your answer, then check the rationale directly below it. The correct
option is marked, and each wrong option is explained so you understand why it's wrong — not
just that it is. This guide contains 120 practice questions covering key content areas for the
CMCA (Certified Manager of Community Associations) Certification Examination.
Category: Comprehensive CMCA Exam Review
1 Community association managers must be familiar with federal income tax
requirements and options because:
A The IRS will intermittently interview the manager concerning tax filing status.
B States require managers to be knowledgeable in this area of community association
finance.
C Under federal tax code, all organizations are taxable on their income unless
specifically exempted.
D The accountant will require input from the community association when the tax
return is prepared.
Why C is correct: Community association managers must be familiar with Federal income
tax requirements and options because under federal tax code, all organizations are taxable
on their income unless specifically exempted. Community associations may qualify for tax-
exempt status under Section 528 of the Internal Revenue Code, but managers need to
understand the requirements and options available. IRS interviews are not a regular
occurrence, state requirements vary, and while accountants need input, this is not the
primary reason for manager familiarity.
A — IRS interviews are not a regular occurrence for managers.
B — State requirements vary and are not the primary reason for familiarity.
D — While accountants need input, this is not the primary reason for manager familiarity.
, 2 Which of the following is a guarantee by a surety to protect the association if a
contractor fails to perform or finish their work?
A Payment Bond.
B Performance Bond.
C Third Party Insurance.
D Fidelity Insurance.
Why B is correct: A performance bond is a guarantee by a surety company that protects
the association if a contractor fails to perform or complete their work according to the
contract specifications. A payment bond guarantees payment to subcontractors and
suppliers. Third-party insurance and fidelity insurance serve different purposes.
A — A payment bond guarantees payment to subcontractors and suppliers.
C — Third-party insurance covers liability claims, not contractor performance.
D — Fidelity insurance covers employee dishonesty, not contractor performance.
3 If you want to know the difference between actual and budget figures for a revenue
account, to which documents should you refer?
A Balance Sheet and Budget.
B Statement of Cash Flow and Budget.
C Statement of Profit and Loss.
D Statement of Income and Expenses and Budget.
Why D is correct: To know the difference between actual and budget figures for a revenue
account, you should refer to the Statement of Income and Expenses and the Budget. The
Statement of Income and Expenses shows actual revenues, while the budget shows planned
revenues. Comparing the two identifies variances. The balance sheet, cash flow statement,
and profit and loss statement serve different purposes.
A — The balance sheet shows financial position, not revenue variances.
B — The cash flow statement shows cash movements, not revenue variances.
C — The profit and loss statement is another name for income statement but does not
include the budget.
