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. - (answers)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.
- (answers)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. - (answers)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. - (answers)what does "co-insurance" obligate the
association to do?
A. Pay the deductible
B. Maintain certain limits of insurance
,Random CMCA Practice Test Questions (Under
Construction)
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. - (answers)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. - (answers)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.
, Random CMCA Practice Test Questions (Under
Construction)
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. - (answers)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:
A. Audit work is and should be conducted by an independent cpa on a scheduled basis,
typically annually. The accuracy of such work will be wholly determined by the person(s)
performing such work.
C. - (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.
False - (answers)true or false:
Construction)
C. A work order/response form - a, b, and d speak to elements other than a control to ensure
maintenance work is completed. - (answers)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.
- (answers)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. - (answers)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. - (answers)what does "co-insurance" obligate the
association to do?
A. Pay the deductible
B. Maintain certain limits of insurance
,Random CMCA Practice Test Questions (Under
Construction)
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. - (answers)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. - (answers)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.
, Random CMCA Practice Test Questions (Under
Construction)
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. - (answers)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:
A. Audit work is and should be conducted by an independent cpa on a scheduled basis,
typically annually. The accuracy of such work will be wholly determined by the person(s)
performing such work.
C. - (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.
False - (answers)true or false:
