M 100 TEST BANK COMPLETE QUESTIONS
AND SOLUTIONS ALREADY GRADED A+
●● Which of the following statements regarding the CPA's role in
preparing annual reports is not true?
Answer: A review is a less thorough, and less costly, analysis of a
community's financial statements.
●● Legal obligations of a community association are derived from all of
the following EXCEPT:
Answer: Community newsletter surveys
●● The interim report titled the statement of revenue and expense:
Answer: Records the community association's financial transactions
during a given period of time.
●● Which of the following is the best description of fiduciary duty?
Answer: Fiduciary duty requires directors to act in the best interest of
the community as a whole.
●● According to the general hierarchy for governing documents, which
of the following would control in the event of a conflict?
Answer: State law
, ●● The management report for a community association board meeting
should include all of the following EXCEPT:
Answer: Personal opinions of residents
●● The owner's financial obligation to the community association during
a given period of time is:
Answer: an assessment
●● During a community association board meeting, the manager could
do all of the following EXCEPT:
Answer: Encourage discussion of a director's private concerns
●● The provisions detailing membership meeting procedures and the
board's powers and duties are generally located in the association's
Answer: Bylaws
●● A record of actions to be taken before the next board meeting is
called:
Answer: An action item list
●● Which of the following is not a characteristic of an effective facilities
maintenance system?
Answer: Positive outlook and atmosphere among community members
AND SOLUTIONS ALREADY GRADED A+
●● Which of the following statements regarding the CPA's role in
preparing annual reports is not true?
Answer: A review is a less thorough, and less costly, analysis of a
community's financial statements.
●● Legal obligations of a community association are derived from all of
the following EXCEPT:
Answer: Community newsletter surveys
●● The interim report titled the statement of revenue and expense:
Answer: Records the community association's financial transactions
during a given period of time.
●● Which of the following is the best description of fiduciary duty?
Answer: Fiduciary duty requires directors to act in the best interest of
the community as a whole.
●● According to the general hierarchy for governing documents, which
of the following would control in the event of a conflict?
Answer: State law
, ●● The management report for a community association board meeting
should include all of the following EXCEPT:
Answer: Personal opinions of residents
●● The owner's financial obligation to the community association during
a given period of time is:
Answer: an assessment
●● During a community association board meeting, the manager could
do all of the following EXCEPT:
Answer: Encourage discussion of a director's private concerns
●● The provisions detailing membership meeting procedures and the
board's powers and duties are generally located in the association's
Answer: Bylaws
●● A record of actions to be taken before the next board meeting is
called:
Answer: An action item list
●● Which of the following is not a characteristic of an effective facilities
maintenance system?
Answer: Positive outlook and atmosphere among community members
