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CMCA Practice Exam | 150 Questions with 100% Correct
Answers {2023-2024}
Quorum requirements conflicts are resolved by:
a. state statute
b. the board of directors c. a vote of those present at a meeting
d. appointment of a person as a proxy
A Fidelity insurance provides coverage to ensure that the: a. board will meet its fiduciary obligations. b. manager will faithfully follow all document provisions. c. association will be covered for shortfalls in the reserve accounts. d. association will recover any funds lost through employee dishonesty D
Brainpower Read More 04 / 0: Which types of management is the process of operating, maintaining, repairing, and replacing common property? a. human resources b. facilities c. financial d. risk B The higher a document's place in the hierarchy, the: a. harder it is to implement b. greater its power with the board c. more it is regulated legally d. great its legal weight in a court of law D Based on which type of requirements would you choose a contractor over the association to complete work? a. low urgency, cost adequate tools available b. high urgency, low supervision and training possibly needed c. requires supervision, expertise required and low urgency d. low costs, high urgency and borrowed tools C
Who is required to be present for an annual association membership meeting to conduct business? a. the treasurer and the secretary b. a quorum of the board of directors c. all members of the board of directors d. a quorum of the members D Which of the following would a condominium unit member's personal insurance policy cover when it is the primary insurance policy? a. wind damage to the roof of the member's unit. b. bodily injury due to a slip and fall in the common area in front of the member's unit. c. bodily injury due to the association using the member's automobile. d. bodily injury due to a slip and fall within a member's unit. D Community association governing documents and state statutes may require who to be involved in preparing annual reports? a. a CPA b. the owners c. an ad hoc committee d. the management company A What is a typical management control used to identify physical assets? a. checklist b. chart of information c. inventory d. calendar or schedule C When a contractor fails to perform to the terms of the contract, which provision in the contract allows the association to terminate? a. default provisions b. warranty provisions c. insurance provisions d. performance provisions A Where can an individual find the owner and association's maintenance responsibilities? a. the plat map b. the declaration c. the state statute d. the lease B At the monthly board meeting, it is the role of the manger to do all of the following except: a. implement the decisions of the board b. call for a vote on an issue c. keep discussions on target d. act as a resource to the board B
b. FICA c. OSHA d. DOL D A legally binding contract should include all of the following provisions except: a. assignability b. waiver c. insurance d. severability C If a physical asset is to be replaced, the basis for an association's scheduled replacement consists of the: a. reserve study and replacement fund budget b. maintenance record and inspection report c. inspection checklist and reserve fund budget d. inspection report and analysis sheet A A closed board meeting may also be referred to as a: a. private session b. board session c. executive session d. committee session C All of the following are types of association meetings except: a. special meetings b. annual meetings c. ad hoc meetings d. owner meetings C A useful management control to record various maintenance services and information needed in case of an emergency is a maintenance: a. responsibility chart b. analysis sheet c. request form d. contact sheet D All of the following are key contract provisions except: a. standards of performance b. job site safety requirements c. the manner in which payments are made d. contractor's phone numbers D It is good practice for an association to include a disclaimer in its employee manual stating that: a. employment is based on experience and references b. it is not an implied contract or promise of employment
c. employment may include a background check d. the association is not responsible for any possible injuries on the job B To get needed maintenance work performed, a manager must organize the maintenance work into basic categories and: a. pay all invoices when presented b. create controls for ensuring that the work will be completed c. get at least five bids for work over $1, d. have the board inspect the work B Upon receipt of a proper petition to call a special meeting, what should the manager do? a. arrange a meeting with counsel b. advise the board to address it at the next scheduled meeting c. advise the board of its duty to respond in a timely manner d. set up a special meeting location C All of the following are basic types of contracts except: a. service contracts b. repair contracts c. preventive maintenance contracts d. architecture contracts D In which procedure are performance problems brought to the employee's attention and actions taken to correct them? a. employment model b. progressive discipline system c. employee training program d. continuous improvement program B All the following are criteria to be considered when recommending a contractor to the board except: a. understanding of what needs to be done b. possessing the necessary qualifications to do the job c. price d. timeframe D What authority creates the right to vote by proxy? a. association rules and regulations b. state statutes c. common law d. owner's rights B Periodic maintenance performed to avoid disruptive breakdowns and to prolong the useful life of a physical asset is considered: a. routine maintenance b. requested maintenance
A job description should include: a. required duties of the position b. a list of paydays and holidays c. salary and benefits d. reporting relationships A When an organization is interested in receiving proposals for a particular project, what should it develop? a. bid specification b. bid request c. bid qualifications sheet d. bid statement of work B Who is entitled to vote when more than one person owns a unit or lot? a. all owners are entitled and their vote is split b. all owners are entitled and each gets a vote c. neither owner is entitled and they must have a proxy in order to vote d. owners should vote in concert, with one owner designated to cast the vote D The process of reviewing the extent to which a person has met established goals and standards is called: a. progressive planning and enhancement b. performance evaluation c. improvement programing d. the ten steps of highly effective people B Which of the following are detailed instructions about the products or services requested from a contractor? a. warranties b. bid specifications c. qualifications sheet d. payment bonds B More and more associations are employing which professional to attend annual or special meetings and to rule on all procedural questions? a. certified lawyers b. professional parliamentarians c. certified negotiators d. professional arbitrators B A cost and fees contract covers: a. all contracted work fees after its been completed b. a level of performance for a specific period of time and money c. actual labor and materials cost and a percentage of profit d. hourly rates, material costs and a percentage of the total costs C
What is the process of establishing performance goals and standards for an employee? a. employee orientation to the association b. on-going training c. performance planning d. performance evaluation C All of the following statements are correct with regards to special and annual meetings except: a. both have to meet minimum quorum requirements set by the statute b. both require notice of meeting to be sent to all owners within time allotted c. both provide forum for business not stated in meeting notice d. both allow owners to attend in person or by proxy C What is an aid commonly used for planning and budgeting the use of personnel? a. job description b. annual budget c. manpower reports d. performance planning A What sets forth criteria for the annual meeting, including notice, quorum, voting, and proxy procedures? a. article of incorporation b. bylaws c. state statutes d. parliamentary procedures B What regulates specific working conditions, safety equipment and reporting of accidents? a. Fair Labor Standards Act b. child labor laws c. Worker's compensation laws d. Occupational Safety and Health D Each of the following are key characteristics of community associations except: a. mandatory lein-based economic charges or assessments are levied on each owner in order to operate and maintain the community assocation. b. membership in the community assocation is mandatory and automatic for all owners. c. a requirement of community assocation ownership is attending board meetings. d. certain documents bind all owners to be governed by the community assocation. C True or false: the primary purpose of a community association is to provide for the governance, business, and communal aspects of the association. T Each of the following are basic types of residential community associations except: a. planned community b. townhouse c. cooperative d. condominium
Which of the following is an example of an architectural guideline? a. pets b. noise c. fencing d. parking C Each of the following are benefits of using the resolution process to adopt rules except: a. provides an informal approach to making rules b. protects owners from arbitrary board actions c. protects the community from charges that could result in inoperable rules d. provides for consistency in making and wording rules A Each of the following are sections of a resolution except: a. authority b. purpose c. scope and intent d. self help D True or false: governing documents are one of the most important sources of a community's authority to make and enforce rules. T Which of the following is not one of the basic steps in a due process procedure? a. issue a "cease and desist" letter b. issue a hearing notice if the violation does not end within the stated time c. Hold the scheduled hearing if the violation does not end within the stated time. d. Issue a decision before a hearing is held D True or false: using alternative dispute resolution to encourage residents to comply with rules and guidelines is more costly and time consuming that going through the court system. F Which of the following is an internal resource a community can use to encourage an owner or tenant to conform to community association rules? a. relying on local health department to determine the appropriate number of occupants in a unit b. asking for the local zoning department's help in removing vehicles, boats and trailers from lots and common areas c. having the police enforce traffic regulations d. suspending an owner's voting rights D True or false: to increase the likelihood that a court of law will uphold an association's enforcement or architectural guidelines, the board of directors should turn a blind eye towards violations and permit unapproved architectural changes to exist. F True or false: community managers are ultimately responsible for establishing, approving, and monitoring the community's budget. F
Each of the following agencies are federally established secondary mortgage institutions except: a. Environmental Protection Agency b. Federal National Mortgage Assocation c. Veterans' Administration d. Federal Home Loan Mortgage Corporation A True or false: the two main components of a community budget are revenue and expenses. T Which of the following is not a typical source of revenue for a community association? a. owner assessments b. major improvement expenses c. penalty fees d. interest B Each of the following are reasons for maintaining a reserve account except: a. maintaining a reserve account meets legal, fiduciary, and professional requirements b. maintaining a reserve account increases the likelihood that an association will require a special assessment c. maintaining a reserve account equalizes the contributions of old and new owners d. maintaining a reserve account enhances resale values B Which of the following is an example of a discretionary line item in a community budget? a. newsletter b. income taxes c. utilities d. maintenance A True or false: with historical trend budgeting, all line items are set to zero and the amount of funds allotted to each must be justified. F True or false: board member liability is a potential consequence of not having a reserve study. T Complete the following sentence: utilizing a(n) _____________________ means managers and boards can obtain proposals from competent service providers and make informed business decisions to responsibly fund their association's replacement reserves. a. Community Insurance and Risk Management Specialist b. Association Management Specialist c. Professional Community Association Manager d. Reserve Specialist D Each of the following statements regarding community association assessments are true except: a. assessments penalize residences for violating association rules b. an assessment is the owner's financial obligation to the community association during a given period of time c. an assessment for an owner's share of the common expenses is a binding legal obligation based
b. Chapter 11 c. Chapter 13 d. Chapter 21 B Which of the following account methods records revenue when it is collected and expenses when they are paid? a. cash basis b. accrual basis c. modified cash basis d. modified accrual basis A Complete the following sentence: a ________________ occurs when expenses are greater than revenue. a. net income b. net loss c. net gain d. net profit B Which of the following is not one of the three major components of a balance sheet? a. assets b. liabilities c. expenses d. members' equity C True or false: a CPA's representation letter describes the nature of the work to be done, the type of report to be prepared, the fee for services, the time frame for the assignment, and the accountant's disclaimers. F Complete the following sentence: a(n) ______________________ is a year-end financial report prepared by a CPA without the assurance that the information conforms to GAAP. a. compilation b. review c. audit d. opinion letter A True or false: community associations must file a federal income tax return every year. T True or false: requiring a single signature to withdraw funds from an investment account is a good example of a system of internal checks and balances to protect association investments. F Which of the following investment objectives for community associations refers to the ease with which an investment can be converted into cash or a cash equivalent? a. safety b. liquidity c. yield d. treasury bills
B
