Cmca: Financial Management Questions And Correct Answers

CMCA: FINANCIAL MANAGEMENT
QUESTIONS AND CORRECT
ANSWERS
AssessmentA2-A2Ans--
AnA2______________A2isA2theA2owner'sA2financialA2obligationA2toA2theA2communityA2asso
ciationA2duringA2aA2givenA2periodA2ofA2timeA2-
usuallyA2oneA2year.A2ItA2coversA2theA2owner'sA2shareA2ofA2theA2commonA2expense.

BaselineA2fundingA2-A2Ans--

BudgetA2-A2Ans--

ChartA2ofA2accountsA2-A2Ans--
AnA2organizedA2listA2ofA2theA2titles,A2descriptions,A2andA2assignedA2numbersA2ofA2allA2acc
ountsA2inA2anA2organization'sA2generalA2ledger.

DiscretionaryA2budgetA2lineA2itemsA2-A2Ans--
TheseA2areA2itemsA2basedA2onA2owner,A2board,A2andA2committeeA2desires.A2TheyA2areA2it
emsA2peopleA2wouldA2likeA2toA2haveA2-
givenA2theirA2values,A2lifestyle,A2andA2preferredA2levelA2ofA2service,A2e.g.A2socialA2andA2re
creationalA2expenses,A2picnicA2area,A2etc.

ExpensesA2-A2Ans--
ConsistA2ofA2theA2costA2ofA2goodsA2andA2servicesA2usedA2toA2operateA2andA2maintainA2the
A2association'sA2commonA2elements.


FHAA2-A2Ans--

FHLMCA2-A2Ans--

FullA2fundingA2-A2Ans--

HistoricalA2trendA2budgetingA2-A2Ans--
ThisA2methodA2beginsA2withA2theA2assumptionA2thatA2existingA2lineA2itemsA2areA2needed.A
2TheA2amountA2ofA2fundsA2allottedA2toA2eachA2duringA2theA2currentA2yearA2isA2adjustedA2fo
rA2expectedA2changesA2inA2theA2comingA2year.A2SourcesA2ofA2historicalA2informationA2incl
udeA2financialA2reports,A2existingA2contracts,A2andA2billsA2fromA2theA2pastA2year.

MandatoryA2budgetA2lineA2itemsA2-A2Ans--
TheseA2areA2itemsA2basedA2onA2theA2communityA2andA2ownerA2needs.A2TheyA2areA2requir
ementsA2thatA2theA2communityA2isA2obligatedA2toA2meet,A2e.g.A2incomeA2taxes,A2manage
mentA2fees,A2repairs,A2utilities,A2andA2maintenance.

, OperatingA2budgetA2-A2Ans--

OperatingA2expensesA2-A2Ans--
OccurA2onA2aA2regularA2basisA2forA2theA2normalA2andA2usualA2servicesA2andA2repairsA2forA2
theA2association.A2ForA2example,A2swimmingA2poolA2management,A2professionalA2andA2a
dministrativeA2serices,A2utilities,A2etc.

PercentA2fundedA2-A2Ans--
________________A2allowsA2anA2associationA2toA2measureA2theA2relativeA2sizeA2ofA2their
A2replacementA2reservesA2comparedA2toA2aA2"fullyA2funded"A2reserveA2balance.


ReconciliationA2ofA2expensesA2andA2revenueA2-A2Ans--

ReserveA2accountA2-A2Ans--ConsistsA2ofA2fundsA2putA2asideA2-inA2reserve-
A2forA2theA2replacementA2ofA2majorA2componentsA2ofA2aA2community'sA2commonA2propert
y.A2Typically,A2theA2___________________-
A2mightA2beA2usedA2toA2replaceA2asphaltA2paving,A2concreteA2sidewalks,A2roofs,A2contralA2
heating,A2etc.

ReserveA2cashA2flowA2statementA2-A2Ans--
___________A2showsA2theA2amountA2toA2beA2fundedA2andA2theA2amountA2toA2beA2expend
edA2fromA2theA2replacementA2fundA2overA2aA2givenA2periodA2ofA2time.

ReserveA2formulaA2-A2Ans--

ReserveA2SpecialistA2(RS)A2-A2Ans--
CAIA2establishedA2theA2_______________A2designationA2programA2toA2helpA2communityA
2managersA2andA2boardA2membersA2identifyA2qualifiedA2reserveA2studyA2providersA2andA2t
oA2assistA2communitiesA2inA2developingA2theirA2reserveA2study.

ReserveA2studyA2-A2Ans--
____________________A2isA2aA2budgetA2planningA2toolA2withA2whichA2theA2associationA2
expectsA2toA2offsetA2ongoingA2deteriorationA2andA2prepareA2forA2inevitableA2futureA2expen
ses.

RevenueA2-A2Ans--
_________________A2representsA2theA2earningsA2ofA2theA2communityA2association.

SpecialA2assessmentA2-A2Ans--
AA2________________A2isA2aA2onetimeA2assessmentA2oftenA2votedA2onA2byA2theA2owner
sA2toA2coverA2aA2majorA2expenseA2thatA2wasA2notA2includedA2inA2theA2annualA2budgetA2orA2
replacementA2reserve.

ThresholdA2fundingA2-A2Ans--