FL CAM PRACTICE EXAM 2 ACTUAL EXAM COMPLETE
100 QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND
NEW VERSION!!.
QUESTION 1
Ms. Nocredit's community association assessment account is delinquent. The
Florida Law-Abiding Homeowners' Association may file a claim of lien for the
delinquent assessment after providing her with how many days' notice of intent
to lien?
A. 30
B. 25
C. 15
D. 45
CORRECT ANS: D
Expert Rationale
Under Florida law, specifically Chapter 720 (Homeowners' Associations), an
association must provide the delinquent owner with at least 45 days' written
notice of its intent to file a claim of lien before it can record such a lien. This
notice requirement is a statutory prerequisite designed to afford the owner an
opportunity to cure the delinquency before the association takes the more severe
step of filing a lien against the property. The 45-day notice period is a specific
statutory requirement that cannot be shortened by the association's governing
documents. The other options (30, 25, and 15 days) are incorrect timeframes for
this specific statutory notice requirement.
,DIF: Cognitive Level: Understand (Comprehension)
TOP: Florida Homeowners' Association Law - Assessment Liens
MSC: FL CAM Practice Exam
QUESTION 2
Community associations having annual receipts of at least $300,000.00 but less
than $500,000.00 must make available to unit owners which of the following types
of financial statements unless waived?
A. Reported
B. Compiled
C. Corrected and accurate
D. Reviewed
CORRECT ANS: D
Expert Rationale
Under Florida law, the financial reporting requirements for community
associations are tiered based on annual receipts. For associations with annual
receipts of at least $300,000 but less than $500,000, the required financial
statement is a "reviewed" financial statement. A reviewed financial statement
involves a limited inquiry and analytical procedures performed by an independent
CPA, providing a lower level of assurance than an audit but a higher level than a
compilation. An audited financial statement (not listed as an option) is required
for associations with receipts of $500,000 or more. A compiled financial statement
is required for associations with receipts of $150,000 or more but less than
$300,000 (in condominiums). The other options do not correspond to statutory
financial reporting levels.
,DIF: Cognitive Level: Understand (Comprehension)
TOP: Florida Community Association Law - Financial Reporting
MSC: FL CAM Practice Exam
QUESTION 3
All associations ______________________ to file an annual income tax return.
A. Are required
B. Are not required
C. Are required to file under Section 528 of the Code
D. Are never required
CORRECT ANS: A
Expert Rationale
All community associations, regardless of their size or tax status, are required to
file an annual income tax return with the Internal Revenue Service (IRS) unless
they have specifically applied for and received exemption under Section 501(c) of
the IRS Code. Even if the association has no taxable income, it must file a return
(such as Form 1120 or Form 1120-H) to report its financial activity. The
requirement to file an annual income tax return is a universal obligation; the type
of return and the tax liability may vary, but the filing requirement itself applies to
all associations. The other options incorrectly suggest exemptions from filing.
DIF: Cognitive Level: Understand (Comprehension)
TOP: Community Association Taxation - Filing Requirements
MSC: FL CAM Practice Exam
, QUESTION 4
Joe Tighwad, a condominium board member, is always slow to pay his monetary
obligations to the association. If he becomes more than _____ days delinquent, he
will automatically be removed from the board.
A. 30
B. 60
C. 90
D. 120
CORRECT ANS: C
Expert Rationale
Under Florida law, a condominium board member who becomes more than 90
days delinquent in the payment of any monetary obligation to the association is
automatically deemed to have abandoned their seat on the board. This statutory
provision applies to all monetary obligations, including assessments, fines, and
other charges. The automatic removal is triggered at 91 days of delinquency and
does not require a board vote or formal action. The other options are incorrect;
30, 60, and 120 days are not the statutory trigger for automatic removal.
DIF: Cognitive Level: Understand (Comprehension)
TOP: Florida Condominium Law - Board Member Eligibility
MSC: FL CAM Practice Exam
QUESTION 5
Chapter 718 & 719, F.S. Require the board-adopted annual budget to include
reserves for which of the following choices?
100 QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND
NEW VERSION!!.
QUESTION 1
Ms. Nocredit's community association assessment account is delinquent. The
Florida Law-Abiding Homeowners' Association may file a claim of lien for the
delinquent assessment after providing her with how many days' notice of intent
to lien?
A. 30
B. 25
C. 15
D. 45
CORRECT ANS: D
Expert Rationale
Under Florida law, specifically Chapter 720 (Homeowners' Associations), an
association must provide the delinquent owner with at least 45 days' written
notice of its intent to file a claim of lien before it can record such a lien. This
notice requirement is a statutory prerequisite designed to afford the owner an
opportunity to cure the delinquency before the association takes the more severe
step of filing a lien against the property. The 45-day notice period is a specific
statutory requirement that cannot be shortened by the association's governing
documents. The other options (30, 25, and 15 days) are incorrect timeframes for
this specific statutory notice requirement.
,DIF: Cognitive Level: Understand (Comprehension)
TOP: Florida Homeowners' Association Law - Assessment Liens
MSC: FL CAM Practice Exam
QUESTION 2
Community associations having annual receipts of at least $300,000.00 but less
than $500,000.00 must make available to unit owners which of the following types
of financial statements unless waived?
A. Reported
B. Compiled
C. Corrected and accurate
D. Reviewed
CORRECT ANS: D
Expert Rationale
Under Florida law, the financial reporting requirements for community
associations are tiered based on annual receipts. For associations with annual
receipts of at least $300,000 but less than $500,000, the required financial
statement is a "reviewed" financial statement. A reviewed financial statement
involves a limited inquiry and analytical procedures performed by an independent
CPA, providing a lower level of assurance than an audit but a higher level than a
compilation. An audited financial statement (not listed as an option) is required
for associations with receipts of $500,000 or more. A compiled financial statement
is required for associations with receipts of $150,000 or more but less than
$300,000 (in condominiums). The other options do not correspond to statutory
financial reporting levels.
,DIF: Cognitive Level: Understand (Comprehension)
TOP: Florida Community Association Law - Financial Reporting
MSC: FL CAM Practice Exam
QUESTION 3
All associations ______________________ to file an annual income tax return.
A. Are required
B. Are not required
C. Are required to file under Section 528 of the Code
D. Are never required
CORRECT ANS: A
Expert Rationale
All community associations, regardless of their size or tax status, are required to
file an annual income tax return with the Internal Revenue Service (IRS) unless
they have specifically applied for and received exemption under Section 501(c) of
the IRS Code. Even if the association has no taxable income, it must file a return
(such as Form 1120 or Form 1120-H) to report its financial activity. The
requirement to file an annual income tax return is a universal obligation; the type
of return and the tax liability may vary, but the filing requirement itself applies to
all associations. The other options incorrectly suggest exemptions from filing.
DIF: Cognitive Level: Understand (Comprehension)
TOP: Community Association Taxation - Filing Requirements
MSC: FL CAM Practice Exam
, QUESTION 4
Joe Tighwad, a condominium board member, is always slow to pay his monetary
obligations to the association. If he becomes more than _____ days delinquent, he
will automatically be removed from the board.
A. 30
B. 60
C. 90
D. 120
CORRECT ANS: C
Expert Rationale
Under Florida law, a condominium board member who becomes more than 90
days delinquent in the payment of any monetary obligation to the association is
automatically deemed to have abandoned their seat on the board. This statutory
provision applies to all monetary obligations, including assessments, fines, and
other charges. The automatic removal is triggered at 91 days of delinquency and
does not require a board vote or formal action. The other options are incorrect;
30, 60, and 120 days are not the statutory trigger for automatic removal.
DIF: Cognitive Level: Understand (Comprehension)
TOP: Florida Condominium Law - Board Member Eligibility
MSC: FL CAM Practice Exam
QUESTION 5
Chapter 718 & 719, F.S. Require the board-adopted annual budget to include
reserves for which of the following choices?
