CMCA Practice Exam (New 2026/ 2027
Update) Questions & Answers {Grade A}
100% Correct (Verified Solutions)
Which of the following types of bankruptcy is called a corporation reorganization
because it is designed to allow for an orderly payment to creditors while enabling a
corporation to continue in business?
a. Chapter 7
b. Chapter 11
c. Chapter 13
d. Chapter 21 - Correct answer B
Which of the following account methods records revenue when it is collected and
expenses when they are paid?
a. cash basis
b. accrual basis
c. modified cash basis
d. modified accrual basis - Correct answer A
,Complete the following sentence: a ________________ occurs when expenses are greater
than revenue.
a. net income
b. net loss
c. net gain
d. net profit - Correct answer B
Which of the following is not one of the three major components of a balance sheet?
a. assets
b. liabilities
c. expenses
d. members' equity - Correct answer C
True or false: a CPA's representation letter describes the nature of the work to be
done, the type of report to be prepared, the fee for services, the time frame for the
assignment, and the accountant's disclaimers. - Correct answer F
,Complete the following sentence: a(n) ______________________ is a year-end financial
report prepared by a CPA without the assurance that the information conforms to
GAAP.
a. compilation
b. review
c. audit
d. opinion letter - Correct answer A
True or false: community associations must file a federal income tax return every year.
- Correct answer T
True or false: requiring a single signature to withdraw funds from an investment
account is a good example of a system of internal checks and balances to protect
association investments. - Correct answer F
Which of the following investment objectives for community associations refers to the
ease with which an investment can be converted into cash or a cash equivalent?
a. safety
, b. liquidity
c. yield
d. treasury bills - Correct answer B
Complete the following sentence: for a community association, ___________________ is
the process of operating, maintaining, repairing, and replacing common property.
a. preventative maintenance
b. facilities management
c. maintenance record
d. scheduled replacement - Correct answer B
True or false: one of the goals of maintenance for a community association is to limit
injury to residences, guests, and employees. - Correct answer T
Each of the following includes steps in establishing a maintenance system for a
community association except:
a. assign blame to staff not adequately fulfilling maintenance responsibilities
b. develop maintenance management controls
Update) Questions & Answers {Grade A}
100% Correct (Verified Solutions)
Which of the following types of bankruptcy is called a corporation reorganization
because it is designed to allow for an orderly payment to creditors while enabling a
corporation to continue in business?
a. Chapter 7
b. Chapter 11
c. Chapter 13
d. Chapter 21 - Correct answer B
Which of the following account methods records revenue when it is collected and
expenses when they are paid?
a. cash basis
b. accrual basis
c. modified cash basis
d. modified accrual basis - Correct answer A
,Complete the following sentence: a ________________ occurs when expenses are greater
than revenue.
a. net income
b. net loss
c. net gain
d. net profit - Correct answer B
Which of the following is not one of the three major components of a balance sheet?
a. assets
b. liabilities
c. expenses
d. members' equity - Correct answer C
True or false: a CPA's representation letter describes the nature of the work to be
done, the type of report to be prepared, the fee for services, the time frame for the
assignment, and the accountant's disclaimers. - Correct answer F
,Complete the following sentence: a(n) ______________________ is a year-end financial
report prepared by a CPA without the assurance that the information conforms to
GAAP.
a. compilation
b. review
c. audit
d. opinion letter - Correct answer A
True or false: community associations must file a federal income tax return every year.
- Correct answer T
True or false: requiring a single signature to withdraw funds from an investment
account is a good example of a system of internal checks and balances to protect
association investments. - Correct answer F
Which of the following investment objectives for community associations refers to the
ease with which an investment can be converted into cash or a cash equivalent?
a. safety
, b. liquidity
c. yield
d. treasury bills - Correct answer B
Complete the following sentence: for a community association, ___________________ is
the process of operating, maintaining, repairing, and replacing common property.
a. preventative maintenance
b. facilities management
c. maintenance record
d. scheduled replacement - Correct answer B
True or false: one of the goals of maintenance for a community association is to limit
injury to residences, guests, and employees. - Correct answer T
Each of the following includes steps in establishing a maintenance system for a
community association except:
a. assign blame to staff not adequately fulfilling maintenance responsibilities
b. develop maintenance management controls
