CMCA EXAM 2024 REAL EXAM COMPREHENSIVE
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS)| GRADE A+| GET IT 100% ACCURATE!!
action item list - ANSWER - a documented event, task, activity, or action that needs to
take place usually documented in the meeting minutes and are recorded in the task list
of the group—at the next meeting it is reviewed by the group and at that meeting the
facilitator will check the status of these items
agenda - ANSWER - a list of meeting activities in the order in which they are to be taken
up, beginning with the call to order and ending with the adjournment
due process procedure - ANSWER - a formal practice designed to protect the rights of
all parties involved
hearing notice - ANSWER - a written notice to an alleged violator that a meeting will be
held to consider his or her alleged violation
hierarchy of authority - ANSWER - rules and architectural guidelines may not contradict
or be in conflict with the legal sources that take precedence over them; although rules
and architectural guidelines are ranked lower in the for community associations, they
may clarify and expand a community's governing documents—but may not conflict with
the other governing documents
rule - ANSWER - a specific statement of required behavior whose violation carries a
penalty (sometimes called a sanction)
assessment - ANSWER - the owner's financial obligation to the community association
during a given period of time—usually one year
, 2
baseline funding - ANSWER - the goal of this strategy is to keep the reserve cash
balance above zero
chart of accounts - ANSWER - an organized list of titles, descriptions and assigned
numbers of all categories in an organization's general ledger; the assigned number
helps you locate the account and the title describes the category
discretionary budget line items - ANSWER - items based on owner, board and
committee desires; they are items people would like to have—given their values,
lifestyle, and preferred level of service (e.g. social and recreational expenses, and picnic
areas)
expenses - ANSWER - the cost of goods and services used to operate and maintain the
community's property
FHA (Federal Housing Administration) - ANSWER - regulates and influences such items
as the amount of insurance a community association must carry, procedures for
financial operations and requirements for the upkeep of property
FHLMC (Federal Home Loan Mortgage Corporation) - ANSWER - buys mortgages from
lenders and in doing so require certain types of insurance to be in place
FNMA (Federal National Mortgage Association) - ANSWER - federally established
secondary mortgage institution that may set requirements that your community
association will have to meet if owners are to participate in their financing programs
full funding - ANSWER - the goal of this strategy is to attain and maintain the reserves
at or near 100% as called for on the component inventory
historical and trend budgeting - ANSWER - this method begins with the assumption that
existing line items are needed; the amount of funds allotted to each during the current
year is adjusted for expected changes in the coming year
, 3
major improvement expenses - ANSWER - consist of items that are not necessarily
required, but are added to improve the overall welfare, safety or life of the residents—or
to enhance the value of the community association as reflected in the resale value of
units
operating budget - ANSWER - the financial plan devoted to day-to-day activities
includes operational expenses and major improvement expenses—but not the
replacement fund
operating expenses - ANSWER - those items that occur on a regular basis—day to day,
week to week, month to month, and year to year
reconciliation of expenses and revenue - ANSWER - after you draft both your operating
and replacement fund budgets for the coming year, you must settle your estimated
expenses with your community's anticipated revenue; to bring together after a difference
replacement fund - ANSWER - consists of money put aside—in reserve—for the
replacement of major components of a community's common property
reserve cash flow statement - ANSWER - shows the amount to be funded and the
amount to be expended from the replacement fund over a given period of time
reserve study - ANSWER - budget planning tool that considers the current status of the
replacement fund and determines a stable and equitable funding plan to offset the
anticipated future major common area expenditures
revenue - ANSWER - consists of the collective items or amounts of income which, in the
case of a community association, are appropriated for public expenses
threshold funding - ANSWER - this method of funding is based on the baseline-funding
concept; the minimum reserve cash balance in this concept is set at a predetermined
dollar amount
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