FL Cam final exam Correctly Answered

An association should establish reserves for -Answer (a) Because associations may be able to avoid or reduce large special assessments. An association should establish reserves for -Answer (c) Because associations may be able to avoid or reduce large increases in regular assessments. An association should establish reserves for -Answer Because there are statutory requirements that mandate reserves in certain circumstances. 99. What is a balance sheet? -Answer A statement of the association's financial position at a particular moment in time 98. If an association files its federal income tax return using Form 1120, it must pay taxes on any excess revenue over expenses unless: -Answer (a) The excess is returned to its members. 97. An association with a total annual revenue of less than $150,000 is required to prepare which type of annual financial report? -Answer (c) Cash receipts 96. If an HOA provides a notice instead of a copy of the financial report to its members, within what period must it provide a copy of the annual financial report, upon written request of a member? -Answer (c) Ten business days 95. If a condominium board decides to send a notice to its members instead of a copy of the financial report, what statement must be included? -Answer (b) A copy of the financial report will be mailed or hand- delivered, without charge, within five business days after receipt of the member's written request. 94. The annual financial report or a notice of its availability upon request, must be mailed to the members of a condominium or HOA within: -Answer (b) Twenty-one days after the report is completed but not more than 120 days after the end of the prior fiscal year or other date provided in the bylaws 93. All of the following are true of an estoppel certificate -Answer (a) It is requested by title and mortgage companies on sales, transfers, and re-financings. 93. All of the following are true of an estoppel certificate -Answer (b) It is legally binding even if factually incorrect. 93. All of the following are true of an estoppel certificate -Answer (d) It may include a statement of future costs of correcting a member's use restriction violations.