CMCA Practice Test Questions Exam Prep |
Complete Practice Exam Questions with 100%
Verified Correct Answers and Detailed
Rationales | Latest Update - 2026/2027 Edition
Question 1
Which of the following is a common management control for ensuring
maintenance work is performed in a timely manner?
A. A purchase order system
B. An equipment warranties
C. A work order/response form
D. A contractor's invoice
Answer: C
Rationale: A work order/response form is a common management control for
ensuring maintenance work is performed in a timely manner. Options A, B, and D
speak to elements other than a control to ensure maintenance work is completed. A
work order assigns tasks and tracks completion.
Question 2
The primary management control tool for identifying whether the association
needs to maintain a particular property element is:
A. Physical inspections
B. Association bylaws
C. Maintenance responsibility chart
D. Community asset inventory
Answer: C
Rationale: A maintenance responsibility chart, along with the governing
documents, defines parameters of association maintenance responsibility. The
other answers have no bearing on necessity of maintenance or maintenance
responsibility.
pg. 1
,Question 3
In what type of a contract would a waiver of lien be recommended?
A. Repair of the HVAC system
B. Re-roofing the buildings
C. Repair of the pool pump
D. Annual tree pruning
Answer: B
Rationale: Re-roofing the buildings involves large contracts with significant
material purchases and/or use of subcontractors, commonly include lien waivers
and should be recommended to the board. HVAC repair (A), pool pump repair (C),
and annual tree pruning (D) typically do not include significant material purchases
or the use of subcontractors, so a waiver of lien is not necessary.
Question 4
What does "Co-Insurance" obligate the Association to do?
A. Pay the deductible
B. Maintain certain limits of insurance
C. Cover the depreciated value of all association buildings
D. Provide insurance for homeowners
Answer: B
Rationale: Co-insurance seeks to maintain the limits of insurance in place at the
time of a loss and speaks to insurance obligation for the parties involved in the
claim. Co-insurance does not obligate the Association to pay a deductible (A), does
not cover depreciated value (C), and provides no obligation to provide insurance
for homeowners (D).
Question 5
When an association contracts out all of its services and has no employees, it is a
best business practice to:
A. Negotiate contracts within the bidding process
B. Purchase employment practices liability insurance
C. Assume the contractors carry their own insurance coverage
D. Increase the coverage under the D&O insurance policy
Answer: A
Rationale: The association should negotiate contracts with the bidding process.
pg. 2
,Employment practices liability insurance (B) is typically purchased by an
association that has employees. The association MUST NEVER assume that
contractors carry their own insurance coverage (C) and should require all
contractors to provide evidence of insurance. D&O insurance (D) is designed to
pay for wrongful acts that do not lead to property damage, bodily injury, personal
injury, or advertising injury—it is unlikely that the services of independent
contractors would lead to claims under D&O.
Question 6
If an owner fails to receive notice of a meeting, the association is not responsible if
the owner:
A. Did not notify association of their current address
B. Does not usually attend the meetings
C. Already signed the petition to call the meeting
D. Shares title with multiple owners
Answer: A
Rationale: It is the owner's responsibility to provide current contact information to
Management. The duty to notify all owners of meetings belongs to the Board (B),
which is often delegated to Management. Signing a petition (C) is not legal notice
of the meeting. In the case of multiple owners (D), the owners have the duty to
notify the Board/Management which one of the owners will receive notices.
Question 7
What is the primary source of requirements when developing the association's
annual maintenance budget?
A. Governing documents
B. State law
C. Annual audit
D. Reserve Study
Answer: A
Rationale: The governing documents are the primary source of requirements when
developing the association's annual maintenance budget. The maintenance plan (B)
is a plan for doing repairs. The annual audit (C) will show financial position but
not what maintenance work is required. Reserves (D) are funded separately for
long-term repairs.
pg. 3
, Question 8
The best reasoning for recommending the modified accrual accounting method is
that, compared to cash accounting, it:
A. Will make future audit work more accurate
B. More accurately reflects the association's financial condition
C. Is more easily understood by board members
D. Can be accomplished more quickly
Answer: B
Rationale: Under the modified accrual basis, some accounts, such as assessment
income, are maintained on the accrual basis and other accounts, such as interest or
other miscellaneous income accounts, and some expenses, such as miscellaneous
repairs, are maintained on a cash basis. The accrual of major expenses in particular
gives the reader a much more accurate depiction of the association's financial
standing. Audit work (A) is conducted by an independent CPA. It is not necessarily
accurate that board members will understand one type over another (C). It may
take more time to produce a report on the modified accrual basis (D).
Question 9
When developing a rule, it must be consistent with:
A. Fine schedules as approved by the courts
B. Board recommendations and resolutions
C. Guidelines established within the governing documents
D. Applicable statutes and governing documents
Answer: D
Rationale: Rules cannot conflict with statutes and governing documents. Penalty
(A) is not part of development, it is part of enforcement. Resolution (B) is a
method of formalizing rules, not developing them. Rules usually expand on or
clarify governing documents (C).
Question 10
In an initial letter you send to an owner who has violated one of the association's
adopted rules, which of the following is included?
A. The amount of fine assessed
B. Steps to amend the rules
pg. 4
Complete Practice Exam Questions with 100%
Verified Correct Answers and Detailed
Rationales | Latest Update - 2026/2027 Edition
Question 1
Which of the following is a common management control for ensuring
maintenance work is performed in a timely manner?
A. A purchase order system
B. An equipment warranties
C. A work order/response form
D. A contractor's invoice
Answer: C
Rationale: A work order/response form is a common management control for
ensuring maintenance work is performed in a timely manner. Options A, B, and D
speak to elements other than a control to ensure maintenance work is completed. A
work order assigns tasks and tracks completion.
Question 2
The primary management control tool for identifying whether the association
needs to maintain a particular property element is:
A. Physical inspections
B. Association bylaws
C. Maintenance responsibility chart
D. Community asset inventory
Answer: C
Rationale: A maintenance responsibility chart, along with the governing
documents, defines parameters of association maintenance responsibility. The
other answers have no bearing on necessity of maintenance or maintenance
responsibility.
pg. 1
,Question 3
In what type of a contract would a waiver of lien be recommended?
A. Repair of the HVAC system
B. Re-roofing the buildings
C. Repair of the pool pump
D. Annual tree pruning
Answer: B
Rationale: Re-roofing the buildings involves large contracts with significant
material purchases and/or use of subcontractors, commonly include lien waivers
and should be recommended to the board. HVAC repair (A), pool pump repair (C),
and annual tree pruning (D) typically do not include significant material purchases
or the use of subcontractors, so a waiver of lien is not necessary.
Question 4
What does "Co-Insurance" obligate the Association to do?
A. Pay the deductible
B. Maintain certain limits of insurance
C. Cover the depreciated value of all association buildings
D. Provide insurance for homeowners
Answer: B
Rationale: Co-insurance seeks to maintain the limits of insurance in place at the
time of a loss and speaks to insurance obligation for the parties involved in the
claim. Co-insurance does not obligate the Association to pay a deductible (A), does
not cover depreciated value (C), and provides no obligation to provide insurance
for homeowners (D).
Question 5
When an association contracts out all of its services and has no employees, it is a
best business practice to:
A. Negotiate contracts within the bidding process
B. Purchase employment practices liability insurance
C. Assume the contractors carry their own insurance coverage
D. Increase the coverage under the D&O insurance policy
Answer: A
Rationale: The association should negotiate contracts with the bidding process.
pg. 2
,Employment practices liability insurance (B) is typically purchased by an
association that has employees. The association MUST NEVER assume that
contractors carry their own insurance coverage (C) and should require all
contractors to provide evidence of insurance. D&O insurance (D) is designed to
pay for wrongful acts that do not lead to property damage, bodily injury, personal
injury, or advertising injury—it is unlikely that the services of independent
contractors would lead to claims under D&O.
Question 6
If an owner fails to receive notice of a meeting, the association is not responsible if
the owner:
A. Did not notify association of their current address
B. Does not usually attend the meetings
C. Already signed the petition to call the meeting
D. Shares title with multiple owners
Answer: A
Rationale: It is the owner's responsibility to provide current contact information to
Management. The duty to notify all owners of meetings belongs to the Board (B),
which is often delegated to Management. Signing a petition (C) is not legal notice
of the meeting. In the case of multiple owners (D), the owners have the duty to
notify the Board/Management which one of the owners will receive notices.
Question 7
What is the primary source of requirements when developing the association's
annual maintenance budget?
A. Governing documents
B. State law
C. Annual audit
D. Reserve Study
Answer: A
Rationale: The governing documents are the primary source of requirements when
developing the association's annual maintenance budget. The maintenance plan (B)
is a plan for doing repairs. The annual audit (C) will show financial position but
not what maintenance work is required. Reserves (D) are funded separately for
long-term repairs.
pg. 3
, Question 8
The best reasoning for recommending the modified accrual accounting method is
that, compared to cash accounting, it:
A. Will make future audit work more accurate
B. More accurately reflects the association's financial condition
C. Is more easily understood by board members
D. Can be accomplished more quickly
Answer: B
Rationale: Under the modified accrual basis, some accounts, such as assessment
income, are maintained on the accrual basis and other accounts, such as interest or
other miscellaneous income accounts, and some expenses, such as miscellaneous
repairs, are maintained on a cash basis. The accrual of major expenses in particular
gives the reader a much more accurate depiction of the association's financial
standing. Audit work (A) is conducted by an independent CPA. It is not necessarily
accurate that board members will understand one type over another (C). It may
take more time to produce a report on the modified accrual basis (D).
Question 9
When developing a rule, it must be consistent with:
A. Fine schedules as approved by the courts
B. Board recommendations and resolutions
C. Guidelines established within the governing documents
D. Applicable statutes and governing documents
Answer: D
Rationale: Rules cannot conflict with statutes and governing documents. Penalty
(A) is not part of development, it is part of enforcement. Resolution (B) is a
method of formalizing rules, not developing them. Rules usually expand on or
clarify governing documents (C).
Question 10
In an initial letter you send to an owner who has violated one of the association's
adopted rules, which of the following is included?
A. The amount of fine assessed
B. Steps to amend the rules
pg. 4
