Statement of Revenue and Expense - Answer- This report shows the activity over a period of time & therefore will indicate the amount of income received & expenses incurred, whether actual or accrued, for all activity of the association through the 8 months of the fiscal year. The report may also sh...
1. Statement of Revenue and Expense: This report shows the activity over a
period of time & therefore will indicate the amount of income received & expenses
incurred, whether actual or accrued, for all activity of the association through the 8
months of the fiscal year. The report may also show the amount of money in each
budgeted line item for the entire year & amount remaining in each line for the last 4
months of the year.
2. Your association just completed the eighth month of its fiscal year. Which
financial report would be most useful to project year end expenses?: State-
ment of Revenue and Expense
3. The best reasoning for recommending the modified accrual accounting
method is that, compared to cash accounting, it:: More accurately reflects the
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, CMCA Practice Exam Terms/Questions
associations financial condition
4. Modified Cash Basis: Under the modified accrual basis, also sometimes re-
ferred 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
misc. income accounts and some expenses such as 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 of invoices, gives the
reader a much more accurate depiction of the association's financial standing, as
the accruals serve to alert the reader to the recognition of obligations that the
association must meet
5. Community association managers must be familiar with Federal income tax
requirements and options because:: Under the Federal tax code, all organiza-
tions are taxable on their income unless specifically exempted
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