Random CMCA Practice Test UPDATED ACTUAL Exam Questions and CORRECT Answers

Random CMCA Practice Test UPDATED
ACTUAL Exam Questions and CORRECT
Answers
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 accomplishment more quickly. - CORRECT ANSWER - 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.


TRUE OR FALSE:


The basic authority in a community association lies with the developer. - CORRECT
ANSWER - FALSE


The board of directors in a community association has a _____________ to act in the best
interests and for the benefit of the community as a whole.


a. bond
b. fiduciary duty
c. ballot

,d. quorum - CORRECT ANSWER - b. fiduciary duty


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 statues and governing documents - CORRECT ANSWER - D. Applicable
statues and governing documents. Rules cannot conflict with statues and governing documents.


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.
C. The offer to meet to hear the owner's viewpoint.

D. What the outcome of similar cases has been. - CORRECT ANSWER - C. The offer to
meet to hear the owner's viewpoint. Best way to get compliance is to let owner be heard and
explain rule to the owner. Knowledge Tested: Successful rule enforcement Procedures.


If the governing documents and laws present conflicting notice periods, follow:


a. The bylaws
b. State laws
c. Your attorney's advice

d. Declarations - CORRECT ANSWER - b. State laws -


Which of the following is a duty of a manager attending a board meeting?

, a. Call the meeting to order.
b. Establish the agenda.
c. Take the minutes of the meeting.

d. Be the time keeper - CORRECT ANSWER - d. Be the time keeper -


In older condominiums, an association should have what type of contract covering mechanical
equipment?


a. Time and materials
b. Specific repair
c. Service

d. Preventive maintenance - CORRECT ANSWER - d. Preventive maintenance - Preventive
maintenance contracts are used for such items as pool and A/C equipment, boilers and water
heaters where regular service is likely to reduce the chance of expensive emergency repairs.


For which project would a board most likely want to use a consultant to help develop bid
specifications?


a. Landscape renovation project
b. Repairing and/or replacing all roofs
c. Painting the interior of lobbies and hallways

d. Repairing HVAC and boilers - CORRECT ANSWER - b. Repairing and/or replacing all
roofs - An outside consultant is most likely to be used in a large, complicated project, such as
replacement of all roofs in a HOA.


Which of the following has the greatest regulatory influence on the management of a community
association?


a. Federal statues
b. Articles of Incorporation