Exam (elaborations)
Random CMCA Practice Test Questions (Under Construction) – 91 Q’s and A’s
- Course
- Institution
Random CMCA Practice Test Questions (Under Construction) – 91 Q’s and A’s
[Show more]
Seller
Follow
Victorious23
Reviews received
Content preview
Random CMCA Practice Test Questions(Under Construction) – 91 Q’s and A’s
C. A work order/response form - A, B, and D speak to elements OTHER than a
control to ensure maintenance work is completed. - -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. - -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. - -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. - -What does "Co-
Insurance" obligate the Association to do?
A. Pay the deductible
B. Maintain certain limits of insurance
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. - -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. - -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.
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. - -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. - -The best reasoning for recommending the modified accrual accounting
method is that, compared to cash accounting, it:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Victorious23. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78310 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now