CMCA PRACTICE EXAM STUDY QUESTIONS
AND 100% VERIFIED ANSWERS
GUARANTEED PASS | RATED A+
I Wish You the Best in Your Studies and Exam Revision.
,Which of the following would impact the operation of a newly installed entry control system?
A. Communicating the access control policy to residents
B. Identifying warranty procedures
C. Developing a capital replacement budget line item
D.Informing the associations insurance agent - Answer>>>A
What are the two essential financial documents the board of directors should use to determine the
amount of funds available for an unbudgeted expense?
A. Statement of cash flows and accounts receivable report
B. Balance sheet and statement of revenue and expenses
C. Statement of cash flows and check registers
D. Replacement reserve report and general ledger - Answer>>>B
Where would a manager find guidelines regarding the associations responsibility for maintaining
the physical assets?
A. Equipment warranties
B. Real estate sales contract
C. Governing documents
D. Board resolutions - Answer>>>D
In the hierarchy of a community associations governing documents , which of the following is
the highest authority?
A. Bylaws
B. Articles of Incorporation
C. Declaration
D. Mortgage lender requirements - Answer>>>C
A significant decline in the amount of investments is most likely the result of:
A. Failure to invest association funds properly
B. Seasonal timing of expenses
, C. Expenditures out of reserve funds
D. Failure to collect delinquent assessments - Answer>>>C
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 associations financial condition
C. Is more easily understood by board members
D. Can be accomplished more quickly - Answer>>>B
What is the purpose of a Management Letter?
A. To note problem areas in an associations financial operations and recommend modifications
and improvements.
B. To serve as an audit engagement letter after selection of the auditor by the board.
C. To outline the nature and scope of the propose audit
D. To serve as a cover letter to an audit report distributed to association members - Answer>>>A
When monitoring maintenance of an associations swimming pool, which of the following should
be entered into a permanent log at regular intervals?
A. Chlorine level readings
B. Facility usage statistics
C. Pump motor inspections
D. umber of accidents or incidents - Answer>>>A
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 - Answer>>>D
AND 100% VERIFIED ANSWERS
GUARANTEED PASS | RATED A+
I Wish You the Best in Your Studies and Exam Revision.
,Which of the following would impact the operation of a newly installed entry control system?
A. Communicating the access control policy to residents
B. Identifying warranty procedures
C. Developing a capital replacement budget line item
D.Informing the associations insurance agent - Answer>>>A
What are the two essential financial documents the board of directors should use to determine the
amount of funds available for an unbudgeted expense?
A. Statement of cash flows and accounts receivable report
B. Balance sheet and statement of revenue and expenses
C. Statement of cash flows and check registers
D. Replacement reserve report and general ledger - Answer>>>B
Where would a manager find guidelines regarding the associations responsibility for maintaining
the physical assets?
A. Equipment warranties
B. Real estate sales contract
C. Governing documents
D. Board resolutions - Answer>>>D
In the hierarchy of a community associations governing documents , which of the following is
the highest authority?
A. Bylaws
B. Articles of Incorporation
C. Declaration
D. Mortgage lender requirements - Answer>>>C
A significant decline in the amount of investments is most likely the result of:
A. Failure to invest association funds properly
B. Seasonal timing of expenses
, C. Expenditures out of reserve funds
D. Failure to collect delinquent assessments - Answer>>>C
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 associations financial condition
C. Is more easily understood by board members
D. Can be accomplished more quickly - Answer>>>B
What is the purpose of a Management Letter?
A. To note problem areas in an associations financial operations and recommend modifications
and improvements.
B. To serve as an audit engagement letter after selection of the auditor by the board.
C. To outline the nature and scope of the propose audit
D. To serve as a cover letter to an audit report distributed to association members - Answer>>>A
When monitoring maintenance of an associations swimming pool, which of the following should
be entered into a permanent log at regular intervals?
A. Chlorine level readings
B. Facility usage statistics
C. Pump motor inspections
D. umber of accidents or incidents - Answer>>>A
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 - Answer>>>D
