CMCA Study Guide Questions with
Correct Answers Graded (100 out of
100)
Acceleration - Answer -The collection of all assessments due through the end of the fiscal year.
For example, if an owner's payments on the annual assessment are due monthly and
become delinquent at the end of March, all monthly payments through December of
that year are due immediately
Accrual basis of accounting - Answer -This method records income when it is earned (or assessed
to owners) and expenses when they are incurred or acquired
Actual cash value (ACV) - Answer -The depreciated value of an item
Ad hoc committee - Answer -Used when an objective needs consideration and no standing
committee within the organization can absorb that issue into its scope. Usually these
committees
are used on a short
-
term basis, such as temporary oversight of an issue
or review of the standing rules of that community
Advertising injury - Answer -language providing coverage to the community association with
respect to damages resulting in "misappropriation of advertising ideas or style of
doing business" or "infringement of copyright, slogan or title
Agreed amount endorsement - Answer -Provides for an agreed upon limit of property
insurance.
Alternative dispute resolution - Answer -Mediation, arbitration and other ways of resolving
conflicts with the help of a specially trained neutral third party without the need for a
formal trial or hearing
Appeal - Answer -A request for a review of a case by a higher authority
—
, if permitted by the
governing documents or statute
Articles of incorporation - Answer -Bring the corporation into existence, define its basic
purposes and powers, indicate whether stock will be issued, and indicate whether there will be a board
of directors
Assessment - Answer -the owner's financial obligation to the community
association during a given period of time
—
usually one year
Assessment - Answer -the owner's financial obligation to the community association during a
given period of time—usually one year. It covers the owner's
share of the common expense, also known as "common expense liabilities" in some
states
Assets - Answer -anything owned that has value. Unlike
commercial businesses, however, generally not the actual land and buildings of the community
association
Assignability provision - Answer -This provision states that neither party may assign its
obligations under the contract to any other person without the express written
consent of the other party
Audit - Answer -An examination of the accounting records and procedures of an organization
by a CPA for the purpose of verifying the accuracy and completeness of financial
records
Bad debt write-off - Answer -consists of recording an uncollectible debt
as an expense of the association
Balance sheet - Answer -a summary of a community's financial position at a
specific point in time
Baseline funding - Answer -The goal of this funding strategy is to keep
the reserve cash
balance above zero
Correct Answers Graded (100 out of
100)
Acceleration - Answer -The collection of all assessments due through the end of the fiscal year.
For example, if an owner's payments on the annual assessment are due monthly and
become delinquent at the end of March, all monthly payments through December of
that year are due immediately
Accrual basis of accounting - Answer -This method records income when it is earned (or assessed
to owners) and expenses when they are incurred or acquired
Actual cash value (ACV) - Answer -The depreciated value of an item
Ad hoc committee - Answer -Used when an objective needs consideration and no standing
committee within the organization can absorb that issue into its scope. Usually these
committees
are used on a short
-
term basis, such as temporary oversight of an issue
or review of the standing rules of that community
Advertising injury - Answer -language providing coverage to the community association with
respect to damages resulting in "misappropriation of advertising ideas or style of
doing business" or "infringement of copyright, slogan or title
Agreed amount endorsement - Answer -Provides for an agreed upon limit of property
insurance.
Alternative dispute resolution - Answer -Mediation, arbitration and other ways of resolving
conflicts with the help of a specially trained neutral third party without the need for a
formal trial or hearing
Appeal - Answer -A request for a review of a case by a higher authority
—
, if permitted by the
governing documents or statute
Articles of incorporation - Answer -Bring the corporation into existence, define its basic
purposes and powers, indicate whether stock will be issued, and indicate whether there will be a board
of directors
Assessment - Answer -the owner's financial obligation to the community
association during a given period of time
—
usually one year
Assessment - Answer -the owner's financial obligation to the community association during a
given period of time—usually one year. It covers the owner's
share of the common expense, also known as "common expense liabilities" in some
states
Assets - Answer -anything owned that has value. Unlike
commercial businesses, however, generally not the actual land and buildings of the community
association
Assignability provision - Answer -This provision states that neither party may assign its
obligations under the contract to any other person without the express written
consent of the other party
Audit - Answer -An examination of the accounting records and procedures of an organization
by a CPA for the purpose of verifying the accuracy and completeness of financial
records
Bad debt write-off - Answer -consists of recording an uncollectible debt
as an expense of the association
Balance sheet - Answer -a summary of a community's financial position at a
specific point in time
Baseline funding - Answer -The goal of this funding strategy is to keep
the reserve cash
balance above zero
