Module 2: Financial Management
from M100 FINAL EXAM
UPDATED 2025/2026 COMPLETE
QUESTIONS WITH CORRECT
DETAILED ANSWERS AND
RATIONALES || 100%
GUARANTEED PASS||<<LATEST
VERSION>>
which of the following types of bankruptcy is called a corporation reorganization
because it is designed to allow for an orderly payment of creditors while enabling
the corporation to continue business?
a. chapter 7
b. chapter 11
c. chapter 13
d. chapter 21 - ANSWER ✓ b. chapter 11
True/False: community managers are ultimately responsible for establishing,
approving, and monitoring the communities budget - ANSWER ✓ False - the
board is
Which of the following officers is responsible for ensuring that the draft budget is
prepared and reviewed:
a. treasurer
b. president
c. secretary
d. vice president - ANSWER ✓ a. treasurer
Each of the following agencies are federally established secondary mortgage
institutions except:
, a. Environmental Protection Agency
b. Federal National Mortgage Association
c. Veterans Administration
d. Federal Home Loan Mortgage Corporation - ANSWER ✓ a. Environmental
Protection Agency
True/False: the two main components of a community budget are revenue and
expenses - ANSWER ✓ true
Which of the following is NOT a typical source of revenue for a community
association?
a. owner assessments
b. major improvement expenses
c. penalty fees
d. interest - ANSWER ✓ c. penalty fees
each of the following are reasons for maintaining a reserve account EXCEPT:
a. maintaining a reserve acct meets legal, fiduciary, and professional requirements
b. maintaining a reserve acct increases the likelihood that an assoc will require a
special assessment
c. maintaining a reserve acct equalizes the contributions of old and new owners
d. maintaining a reserve account enhances resale values. - ANSWER ✓ b.
maintaining a reserve acct increases the likelihood that an assoc will require a
special assessment
which of the following is an example of a discretionary line item in a community
budget:
a. newsletter
b. income taxes
c. utilities
d. maintenance - ANSWER ✓ a. newsletter
True/False: with historical trend budgeting all line items are set to zero and the
amount of funds allotted to each must be justified - ANSWER ✓ False - that is
zero based budgeting
Utilizing a _______ means managers and boards can obtain proposals from
competent reserve providers and make informed business decisions to responsibly
fund their replacement reserves:
from M100 FINAL EXAM
UPDATED 2025/2026 COMPLETE
QUESTIONS WITH CORRECT
DETAILED ANSWERS AND
RATIONALES || 100%
GUARANTEED PASS||<<LATEST
VERSION>>
which of the following types of bankruptcy is called a corporation reorganization
because it is designed to allow for an orderly payment of creditors while enabling
the corporation to continue business?
a. chapter 7
b. chapter 11
c. chapter 13
d. chapter 21 - ANSWER ✓ b. chapter 11
True/False: community managers are ultimately responsible for establishing,
approving, and monitoring the communities budget - ANSWER ✓ False - the
board is
Which of the following officers is responsible for ensuring that the draft budget is
prepared and reviewed:
a. treasurer
b. president
c. secretary
d. vice president - ANSWER ✓ a. treasurer
Each of the following agencies are federally established secondary mortgage
institutions except:
, a. Environmental Protection Agency
b. Federal National Mortgage Association
c. Veterans Administration
d. Federal Home Loan Mortgage Corporation - ANSWER ✓ a. Environmental
Protection Agency
True/False: the two main components of a community budget are revenue and
expenses - ANSWER ✓ true
Which of the following is NOT a typical source of revenue for a community
association?
a. owner assessments
b. major improvement expenses
c. penalty fees
d. interest - ANSWER ✓ c. penalty fees
each of the following are reasons for maintaining a reserve account EXCEPT:
a. maintaining a reserve acct meets legal, fiduciary, and professional requirements
b. maintaining a reserve acct increases the likelihood that an assoc will require a
special assessment
c. maintaining a reserve acct equalizes the contributions of old and new owners
d. maintaining a reserve account enhances resale values. - ANSWER ✓ b.
maintaining a reserve acct increases the likelihood that an assoc will require a
special assessment
which of the following is an example of a discretionary line item in a community
budget:
a. newsletter
b. income taxes
c. utilities
d. maintenance - ANSWER ✓ a. newsletter
True/False: with historical trend budgeting all line items are set to zero and the
amount of funds allotted to each must be justified - ANSWER ✓ False - that is
zero based budgeting
Utilizing a _______ means managers and boards can obtain proposals from
competent reserve providers and make informed business decisions to responsibly
fund their replacement reserves:
