Exam (elaborations)
Random CMCA Practice Test Questions.
- Course
- Institution
Random CMCA Practice Test Questions.
[Show more]
Seller
Follow
EXAMQA
Reviews received
Content preview
Random CMCA Practice Test QuestionsWhich 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 - ANS-C. A work order/response form - A, B, and D speak to
elements OTHER than a control to ensure maintenance work is completed.
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 - ANS-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.
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 - ANS-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.
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 - ANS-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.
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. - ANS-A. Negotiate contracts
within the bidding process.
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. - ANS-A. Did not notify association of their current
address. It is the owner's responsibility to provide current contact information to
Management.
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 - ANS-A. Governing documents
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. - ANS-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.
TRUE OR FALSE:
The basic authority in a community association lies with the developer. - ANS-FALSE
The board of directors in a community association has a _____________ to act in the
best interests and for the benefit of the community as a whole.
a. bond
b. fiduciary duty
c. ballot
d. quorum - ANS-b. fiduciary duty
When developing a rule, it must be consistent with:
A. Fine schedules as approved by the courts
B. Board recommendations and resolutions
C. Guidelines established within the governing documents
D. Applicable statues and governing documents - ANS-D. Applicable statues and
governing documents. Rules cannot conflict with statues and governing documents.
In an initial letter you send to an owner who has violated one of the association's
adopted rules, which of the following is included?
A. The amount of fine assessed.
B. Steps to amend the rules.
C. The offer to meet to hear the owner's viewpoint.
D. What the outcome of similar cases has been. - ANS-C. The offer to meet to hear the
owner's viewpoint. Best way to get compliance is to let owner be heard and explain rule
to the owner. Knowledge Tested: Successful rule enforcement Procedures.
If the governing documents and laws present conflicting notice periods, follow:
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 EXAMQA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81113 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now