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. - Answer-Which 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. -
Answer-The 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. - Answer-In 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. - Answer-What 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
A. 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. -
Answer-When an association contracts out all of its services and has no employees, it is a best business
practice to:
A. Negotiate contracts within the bidding process.
B. Purchase employment practices liability insurance.
C. Assume the contractors carry their own insurance coverage.
D. Increase the coverage under the D&O insurance policy.
A. 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. - Answer-If 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. - Answer-What 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:
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. - Answer-Which 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. -
Answer-The 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. - Answer-In 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. - Answer-What 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
A. 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. -
Answer-When an association contracts out all of its services and has no employees, it is a best business
practice to:
A. Negotiate contracts within the bidding process.
B. Purchase employment practices liability insurance.
C. Assume the contractors carry their own insurance coverage.
D. Increase the coverage under the D&O insurance policy.
A. 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. - Answer-If 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. - Answer-What 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:
