CMCA exam
CMCA Practice Exam 2026 Edition 100
Advanced Questions with Answers and
Detailed Rationales
Part 1 (Questions 1–25)
Question 1
A board president instructs the manager to award a landscaping contract to his friend's company
without obtaining competitive bids as required by association policy.
What should the manager do FIRST?
A. Execute the contract immediately
B. Explain the policy and recommend following established procurement procedures
C. Ignore the president
D. Ask the vendor to lower the price
Answer: B
Rationale:
Managers must advise boards regarding governing documents and adopted procurement policies
while remaining neutral and ethical.
Question 2
Which governing document generally has the highest legal authority after applicable law?
A. Rules and Regulations
B. Board Resolution
C. Declaration (CC&Rs)
D. Committee Charter
Answer: C
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Rationale:
The declaration generally supersedes bylaws, rules, and board resolutions, subject to applicable
statutes.
Question 3
An owner wants to inspect association financial records.
The manager should:
A. Refuse access
B. Allow inspection according to governing documents and applicable law
C. Require board approval first
D. Permit inspection only during annual meetings
Answer: B
Rationale:
Owners typically have statutory or governing-document rights to inspect certain association
records.
Question 4
Which financial statement best shows assets, liabilities, and equity?
A. Income Statement
B. Balance Sheet
C. Cash Flow Statement
D. Budget Comparison Report
Answer: B
Rationale:
The balance sheet reflects financial position at a specific date.
, CMCA exam
Question 5
Reserve funds should generally be used for:
A. Routine landscaping
B. Utility bills
C. Major capital repairs and replacements
D. Office supplies
Answer: C
Rationale:
Reserve funds finance anticipated major repairs and replacements identified through reserve
planning.
Question 6
The board has failed to achieve quorum.
The manager should recommend:
A. Conducting official business anyway
B. Postponing official actions until quorum is achieved
C. Allowing the president to vote for absent directors
D. Counting owner proxies as director votes
Answer: B
Rationale:
Without quorum, the board generally cannot conduct official business.
Question 7
Which insurance protects directors from claims involving management decisions?
A. Builder's Risk
, CMCA exam
B. Fidelity Bond
C. Directors and Officers (D&O)
D. Flood Insurance
Answer: C
Rationale:
D&O insurance protects board members against covered claims arising from governance
decisions.
Question 8
A contractor requests final payment before completing the work.
The manager should:
A. Pay immediately
B. Verify contract completion requirements before authorizing payment
C. Ignore the request
D. Ask homeowners for approval
Answer: B
Rationale:
Payment should align with contractual milestones and verification of satisfactory completion.
Question 9
Which budget item is considered an operating expense?
A. Roof replacement
B. Elevator modernization
C. Office supplies
D. Pool reconstruction
CMCA Practice Exam 2026 Edition 100
Advanced Questions with Answers and
Detailed Rationales
Part 1 (Questions 1–25)
Question 1
A board president instructs the manager to award a landscaping contract to his friend's company
without obtaining competitive bids as required by association policy.
What should the manager do FIRST?
A. Execute the contract immediately
B. Explain the policy and recommend following established procurement procedures
C. Ignore the president
D. Ask the vendor to lower the price
Answer: B
Rationale:
Managers must advise boards regarding governing documents and adopted procurement policies
while remaining neutral and ethical.
Question 2
Which governing document generally has the highest legal authority after applicable law?
A. Rules and Regulations
B. Board Resolution
C. Declaration (CC&Rs)
D. Committee Charter
Answer: C
, CMCA exam
Rationale:
The declaration generally supersedes bylaws, rules, and board resolutions, subject to applicable
statutes.
Question 3
An owner wants to inspect association financial records.
The manager should:
A. Refuse access
B. Allow inspection according to governing documents and applicable law
C. Require board approval first
D. Permit inspection only during annual meetings
Answer: B
Rationale:
Owners typically have statutory or governing-document rights to inspect certain association
records.
Question 4
Which financial statement best shows assets, liabilities, and equity?
A. Income Statement
B. Balance Sheet
C. Cash Flow Statement
D. Budget Comparison Report
Answer: B
Rationale:
The balance sheet reflects financial position at a specific date.
, CMCA exam
Question 5
Reserve funds should generally be used for:
A. Routine landscaping
B. Utility bills
C. Major capital repairs and replacements
D. Office supplies
Answer: C
Rationale:
Reserve funds finance anticipated major repairs and replacements identified through reserve
planning.
Question 6
The board has failed to achieve quorum.
The manager should recommend:
A. Conducting official business anyway
B. Postponing official actions until quorum is achieved
C. Allowing the president to vote for absent directors
D. Counting owner proxies as director votes
Answer: B
Rationale:
Without quorum, the board generally cannot conduct official business.
Question 7
Which insurance protects directors from claims involving management decisions?
A. Builder's Risk
, CMCA exam
B. Fidelity Bond
C. Directors and Officers (D&O)
D. Flood Insurance
Answer: C
Rationale:
D&O insurance protects board members against covered claims arising from governance
decisions.
Question 8
A contractor requests final payment before completing the work.
The manager should:
A. Pay immediately
B. Verify contract completion requirements before authorizing payment
C. Ignore the request
D. Ask homeowners for approval
Answer: B
Rationale:
Payment should align with contractual milestones and verification of satisfactory completion.
Question 9
Which budget item is considered an operating expense?
A. Roof replacement
B. Elevator modernization
C. Office supplies
D. Pool reconstruction
