Random CMCA Practice Test Questions
(Under Construction)
C. A work order/response form - A, B, and D speak to elements OTHER than
a control to ensure maintenance work is completed. correct answersWhich
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
C. 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. correct answersThe 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
B. Re-roofing the buildings - Large contracts involving significant
material purchase and/or use of sub-contractors commonly include lien
waivers and should be recommended to the board.
A, C, and D typically do not include significant material purchases or the
use of sub- contractors so a waiver of lien is not necessary. correct
answersIn what type of a contract would a waiver of lien by
recommended?
A. Repair of the HVAC system
B. Re-roofing the buildings
C. Repair of the pool pump
D. Annual tree pruning
B. Maintain certain limits of insurance - Co-insurance seeks to 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.
Provides no obligation to provide insurance for homeowners. correct
answersWhat 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
E. Negotiate contracts within the bidding process.
Incorrect Answers:
B.Employment practices liability insurance is typically purchased by an
association that has employees to provide coverage against certain types of
claims by those employees, and usually accompanies a workers
compensation insurance policy.
C.The association MUST NEVER assume that contractors carry their own
insurance coverage and should require all contractors to provide evidence
of insurance.
D.D&O insurance policies is designed to pay for wrongful acts that do
not lead to property damage (PD), bodily injury (BI), personal injury (PI), or
advertising injury (AI); an example of a claim for coverage under D&O
would be if a board of directors is accused of not uniformly enforcing rules
or covenants. Therefore, it is unlikely that the services of independent
contractors would lead to claims under D&O. correct answersWhen an
association contracts out all of its services and has no employees, it is a
best business practice to:
E. Negotiate contracts within the bidding process.
F. Purchase employment practices liability insurance.
G. Assume the contractors carry their own insurance coverage.
H. Increase the coverage under the D&O insurance policy.
I.Did not notify association of their current address. It is the owner's
responsibility to provide current contact information to Management.
Incorrect:
B.The duty to notify all owners of meetings belongs to the Board,
which is often delegated to Management.
C.Signing a petition to hold a meeting is not legal notice of the
meeting. The duty to notify all owners of meetings belongs to the Board,
which is often delegated to Management.
D.The notice of meetings is sent to the "Owner of Record" at the last
known address. In the case of multiple owners sharing title to a unit, the
owners of that unity have the duty
, to notify the Board/Management which one of the owners will receive
notices, and provide current contact information. correct answersIf 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.
A. Governing
documents Incorrect:
B. The maintenance
plan is plan for doing
repairs.
C. Will show financial
position but not what
maintenance work is
required.
D. Reserves are funded separately for long term repairs. correct
answersWhat 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
B. More accurately reflects the association's financial condition. Under the
modified accrual basis, also sometimes referred to as modified cash 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,
such as a contract for landscaping, trash removal, etc., regardless of non-
receipt invoices, gives the read a much more accurate depiction of the
association's financial standing, as the accruals serve to alert the reader to
recognition of obligations that the association must meet.
Incorrect:
A. Audit work is and should be conducted by an independent CPA on a
scheduled basis, typically annually. The accuracy of such work will be
wholly determined by the person(s) performing such work.
C. correct answersThe 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.
(Under Construction)
C. A work order/response form - A, B, and D speak to elements OTHER than
a control to ensure maintenance work is completed. correct answersWhich
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
C. 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. correct answersThe 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
B. Re-roofing the buildings - Large contracts involving significant
material purchase and/or use of sub-contractors commonly include lien
waivers and should be recommended to the board.
A, C, and D typically do not include significant material purchases or the
use of sub- contractors so a waiver of lien is not necessary. correct
answersIn what type of a contract would a waiver of lien by
recommended?
A. Repair of the HVAC system
B. Re-roofing the buildings
C. Repair of the pool pump
D. Annual tree pruning
B. Maintain certain limits of insurance - Co-insurance seeks to 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.
Provides no obligation to provide insurance for homeowners. correct
answersWhat 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
E. Negotiate contracts within the bidding process.
Incorrect Answers:
B.Employment practices liability insurance is typically purchased by an
association that has employees to provide coverage against certain types of
claims by those employees, and usually accompanies a workers
compensation insurance policy.
C.The association MUST NEVER assume that contractors carry their own
insurance coverage and should require all contractors to provide evidence
of insurance.
D.D&O insurance policies is designed to pay for wrongful acts that do
not lead to property damage (PD), bodily injury (BI), personal injury (PI), or
advertising injury (AI); an example of a claim for coverage under D&O
would be if a board of directors is accused of not uniformly enforcing rules
or covenants. Therefore, it is unlikely that the services of independent
contractors would lead to claims under D&O. correct answersWhen an
association contracts out all of its services and has no employees, it is a
best business practice to:
E. Negotiate contracts within the bidding process.
F. Purchase employment practices liability insurance.
G. Assume the contractors carry their own insurance coverage.
H. Increase the coverage under the D&O insurance policy.
I.Did not notify association of their current address. It is the owner's
responsibility to provide current contact information to Management.
Incorrect:
B.The duty to notify all owners of meetings belongs to the Board,
which is often delegated to Management.
C.Signing a petition to hold a meeting is not legal notice of the
meeting. The duty to notify all owners of meetings belongs to the Board,
which is often delegated to Management.
D.The notice of meetings is sent to the "Owner of Record" at the last
known address. In the case of multiple owners sharing title to a unit, the
owners of that unity have the duty
, to notify the Board/Management which one of the owners will receive
notices, and provide current contact information. correct answersIf 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.
A. Governing
documents Incorrect:
B. The maintenance
plan is plan for doing
repairs.
C. Will show financial
position but not what
maintenance work is
required.
D. Reserves are funded separately for long term repairs. correct
answersWhat 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
B. More accurately reflects the association's financial condition. Under the
modified accrual basis, also sometimes referred to as modified cash 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,
such as a contract for landscaping, trash removal, etc., regardless of non-
receipt invoices, gives the read a much more accurate depiction of the
association's financial standing, as the accruals serve to alert the reader to
recognition of obligations that the association must meet.
Incorrect:
A. Audit work is and should be conducted by an independent CPA on a
scheduled basis, typically annually. The accuracy of such work will be
wholly determined by the person(s) performing such work.
C. correct answersThe 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.
