CMCA - M100 Exam 2025 Questions and
Answers
55 and older community - --Answer --Must have one person who is 55
years of age or older living in at least 80% of its occupied units. The community
must be designated "55 and older" to qualify as this type of housing that legally
prohibits children and limits occupancy to a certain age span. The designation
process involves submitting applications and obtaining approval before any
enforcement of the ages of residents commences. Approval from the Department
of Housing and Urban Development (HUD) must be received before construction
begins.
Abstention - --Answer --Is to not cast a vote. Board members should abstain
from voting only for clearly stated reasons such as a conflict of interest or
ignorance of the matter at hand.
Acceleration - --Answer --The collection of all assessments due through the
end of the fiscal year. Acceleration is a technique used to collect assessments from
habitually delinquent owners.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Accrual basis of accounting - --Answer --Records revenue when it is earned
and expenses when they are incurred. It provides an accurate picture of the
association's financial condition. GAAP (Generally Accepted Accounting
Principles) requires the use of accrual accounting.
Action item list - --Answer --A list of actions to be taken before the next
board of directors meeting as a result of decisions made at the current one or
between meetings. An action item list contains the decisions to be implemented
together with the names of those assigned implementation responsibility. Excel,
Google Docs and Microsoft Outlook Tasks may be useful programs for helping
you compile your action item list.
Actual cash value (ACV) - --Answer --ACV is the depreciated value of an
item, commonly used in property insurance coverage.
Workers' Compensation Insurance - --Answer --A common insurance
coverage and endorsement for personnel exposures to loss—in this case, loss of
services due to injuries received while working on behalf of the community
association. State statutes determine the classes of employees to be insured and
coverage for loss of services due to employment related injuries. In most states,
workers' compensation insurance is obtained from commercial insurers. Coverage
for associations with no employees is rated on an "if any employee" basis and
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,usually is a minimum premium. Every community association should consider
obtaining workers' compensation insurance.
Wrongful acts - --Answer --Legal claims can be brought against a
community association based on the manner in which it conducts its business.
Examples of "wrongful acts" include the failure to file taxes, collect assessments,
maintain replacement reserves, or deliver core services to its residents
(member/owners and tenants). Directors and officers (D&O) liability insurance is
designed to pay for damages arising from wrongful acts that do not lead to
property damage, bodily injury, advertising injury, or personal injury.
Yield - --Answer --One of three essential investment objectives for
community associations, yield is the amount of return on an investment. The other
two essential investment objectives are liquidity and safety.
Zero-base budgeting - --Answer --A method of budget preparation where all
amounts are set to zero and the budget amount must be justified, instead of
assuming the line item is needed and adjusting the amount for the coming year.
The zerobase approach keeps you from accepting this year's figures at face value. It
requires you to analyze the reasons for the actual amounts spent. The actual dollar
figure may be less or more than the budgeted figure because of circumstances you
cannot assume will exist during the coming year. For example, lawn maintenance
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, costs during a dry season will be low— but a community cannot assume that the
coming year will be just as dry.
Work order/response form - --Answer --A form for assigning maintenance
work to be done. With some planning, it can be used— To document owner and
tenant requests To assign maintenance tasks to both maintenance staff and
contractors As a response form to be returned to an owner or tenant, indicating
that work was completed or confirming that it was assigned As a basis for
allocating charges, when appropriate A work order/response form has several
benefits. It— Identifies whether the need is an emergency or not Requires
attention Allows follow-up to evaluate satisfactio Provides a means of monitoring
costs Provides a history of the repairs that have been made Documents any
problems with contractors reported by owners or tenants Indicates if the work is a
recurring problem necessitating further evaluation Most software programs have
work order/response forms as part of their system.
Warranty - --Answer --A promise or guarantee that parts, materials, or labor
will last for a designated period of time. Warranties required should be part of the
RFP (request for proposal) packet when a community association is interested in
receiving proposals for a particular project. In addition, any contract the
association signs should state the agreed upon warranties clearly and in detail. A
warranty should state: What is covered For how long What is not covered What
the contractor will do if the work or product proves defective
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
Answers
55 and older community - --Answer --Must have one person who is 55
years of age or older living in at least 80% of its occupied units. The community
must be designated "55 and older" to qualify as this type of housing that legally
prohibits children and limits occupancy to a certain age span. The designation
process involves submitting applications and obtaining approval before any
enforcement of the ages of residents commences. Approval from the Department
of Housing and Urban Development (HUD) must be received before construction
begins.
Abstention - --Answer --Is to not cast a vote. Board members should abstain
from voting only for clearly stated reasons such as a conflict of interest or
ignorance of the matter at hand.
Acceleration - --Answer --The collection of all assessments due through the
end of the fiscal year. Acceleration is a technique used to collect assessments from
habitually delinquent owners.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Accrual basis of accounting - --Answer --Records revenue when it is earned
and expenses when they are incurred. It provides an accurate picture of the
association's financial condition. GAAP (Generally Accepted Accounting
Principles) requires the use of accrual accounting.
Action item list - --Answer --A list of actions to be taken before the next
board of directors meeting as a result of decisions made at the current one or
between meetings. An action item list contains the decisions to be implemented
together with the names of those assigned implementation responsibility. Excel,
Google Docs and Microsoft Outlook Tasks may be useful programs for helping
you compile your action item list.
Actual cash value (ACV) - --Answer --ACV is the depreciated value of an
item, commonly used in property insurance coverage.
Workers' Compensation Insurance - --Answer --A common insurance
coverage and endorsement for personnel exposures to loss—in this case, loss of
services due to injuries received while working on behalf of the community
association. State statutes determine the classes of employees to be insured and
coverage for loss of services due to employment related injuries. In most states,
workers' compensation insurance is obtained from commercial insurers. Coverage
for associations with no employees is rated on an "if any employee" basis and
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,usually is a minimum premium. Every community association should consider
obtaining workers' compensation insurance.
Wrongful acts - --Answer --Legal claims can be brought against a
community association based on the manner in which it conducts its business.
Examples of "wrongful acts" include the failure to file taxes, collect assessments,
maintain replacement reserves, or deliver core services to its residents
(member/owners and tenants). Directors and officers (D&O) liability insurance is
designed to pay for damages arising from wrongful acts that do not lead to
property damage, bodily injury, advertising injury, or personal injury.
Yield - --Answer --One of three essential investment objectives for
community associations, yield is the amount of return on an investment. The other
two essential investment objectives are liquidity and safety.
Zero-base budgeting - --Answer --A method of budget preparation where all
amounts are set to zero and the budget amount must be justified, instead of
assuming the line item is needed and adjusting the amount for the coming year.
The zerobase approach keeps you from accepting this year's figures at face value. It
requires you to analyze the reasons for the actual amounts spent. The actual dollar
figure may be less or more than the budgeted figure because of circumstances you
cannot assume will exist during the coming year. For example, lawn maintenance
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, costs during a dry season will be low— but a community cannot assume that the
coming year will be just as dry.
Work order/response form - --Answer --A form for assigning maintenance
work to be done. With some planning, it can be used— To document owner and
tenant requests To assign maintenance tasks to both maintenance staff and
contractors As a response form to be returned to an owner or tenant, indicating
that work was completed or confirming that it was assigned As a basis for
allocating charges, when appropriate A work order/response form has several
benefits. It— Identifies whether the need is an emergency or not Requires
attention Allows follow-up to evaluate satisfactio Provides a means of monitoring
costs Provides a history of the repairs that have been made Documents any
problems with contractors reported by owners or tenants Indicates if the work is a
recurring problem necessitating further evaluation Most software programs have
work order/response forms as part of their system.
Warranty - --Answer --A promise or guarantee that parts, materials, or labor
will last for a designated period of time. Warranties required should be part of the
RFP (request for proposal) packet when a community association is interested in
receiving proposals for a particular project. In addition, any contract the
association signs should state the agreed upon warranties clearly and in detail. A
warranty should state: What is covered For how long What is not covered What
the contractor will do if the work or product proves defective
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
