CMCA PRACTICE EXAM QUESTIONS & ANSWERS 2024, Exams of Nursing

Download CMCA PRACTICE EXAM QUESTIONS & ANSWERS 2024 and more Exams Nursing in PDF only on Docsity! CMCA PRACTICE EXAM QUESTIONS & ANSWERS 2024 Preparing a bid request includes which of the following: A. Verifying References. B. Identifying potential contractors. C. Recommending a contractor to the board. D. Verifying contractor insurance. - Correct Answers ✅B Legal review prior to executing a contract will assist the association in the event that: A. A subcontractor is used. B. A performance bond is required. C. There is a budgetary shortfall. D. The board has questions or concerns. - Correct Answers ✅D Rather than describing the scope of work in detail in the contract, a manager may: A. Attach the bid specifications. B. Call each contractor to describe the job. C. Be on-site to oversee project content. D. Suggest the board meet the contractor to talk about the scope of work. - Correct Answers ✅A CMCA PRACTICE EXAM QUESTIONS & ANSWERS 2024 In older condominiums, an association should have what type of contract covering mechanical equipment? A. Time and materials B. Specific repair C.Service D. Preventative maintenance - Correct Answers ✅D For which project would a board most likely want to use a consultant to help develop bid specifications? A.Landscape renovation project B. Repairing and/or replacing roofs C. Painting the interior of lobbies and hallways D. Repairing HVAC and boilers - Correct Answers ✅B In what type of contract would a waiver of lien be recommended? A. Repair of the HVAC system B.Re-roofing the buildings C. Repair of the pool pump D. Annual tree pruning - Correct Answers ✅B In terms of compensation , a contract should state: A. Who provides insurance coverage CMCA PRACTICE EXAM QUESTIONS & ANSWERS 2024 The purpose of a personnel manual or employee handbook is to: A. Provide the format for job evaluations B. Define individual job descriptions C. Detail the programs the company offers D. Explain he employee rights and responsibilities - Correct Answers ✅D What "duty" do the Board members and the manager have to the members? A. Accountability B. Loyalty C. Service D. Conduct - Correct Answers ✅B Which of the following would impact the operation of a newly installed entry control system? A. Communicating the access control policy to residents B. Identifying warranty procedures C. Developing a capital replacement budget line item D.Informing the associations insurance agent - Correct Answers ✅A CMCA PRACTICE EXAM QUESTIONS & ANSWERS 2024 Who has the ultimate responsibility for the care and maintenance of the common areas, facilities and physical property? A. The board of directors B. The association manager C. The developer until turnover D. The executive committee - Correct Answers ✅A In an initial letter you end to an owner who has violated one of the associations 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 owners viewpoint D. What the outcome of similar cases has been - Correct Answers ✅C 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 statutes and governing documents - Correct Answers ✅D CMCA PRACTICE EXAM QUESTIONS & ANSWERS 2024 The primary purpose of a community association is to: A. Guarantee property tax benefits B. Protect the financial health of the owners C. Provide owners protection from municipal laws D. Deal with governance and business - Correct Answers ✅D The Board of directors receives its authority to perform its specific duties through the: A. Community charter B. Governing Documents C. Board resolutions D. Board member job descriptions - Correct Answers ✅B In preparing the associations annual financial report, many governing documents specify: A. Retaining a independent tax specialist. B. Retaining an independent certified public accountant. C. The establishment of a finance committee D. The use of he management company's accountant - Correct Answers ✅B CMCA PRACTICE EXAM QUESTIONS & ANSWERS 2024 C. Specific State Statutes D. General State Statutes - Correct Answers ✅C Which of the following types of insurance coverage is one of limited value to a community association? A. Liability B. Assessment fee receivable C. Workers compensation D. Commercial umbrella - Correct Answers ✅B A component of building ordinance insurance coverage includes: A. Glass damage B. Extra Demolition C. Water damage D. Power failure - Correct Answers ✅B When an association contracts out all of its service 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 CMCA PRACTICE EXAM QUESTIONS & ANSWERS 2024 D. Increase the coverage under the D&O insurance policy - Correct Answers ✅A Directors ad Officers liability insurance is designed to cover claims resulting from: A. Theft of funds by an association board member B. Wrongful acts of employees of the association C. Bodily injury of directors and officers D. Damage to board owner property - Correct Answers ✅B What section of an insurance policy describes the coverage limits, deductible, policy period, and premium? A. Policy conditions B. Policy Endorsements C. Policy definitions D. Declaration page(s) - Correct Answers ✅D 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 - Correct Answers ✅B CMCA PRACTICE EXAM QUESTIONS & ANSWERS 2024 To provide for payment of the insurance deductible, you would: A. Pass the cost directly on to owners B. Negotiate with the hired contractor C. Allow for costs in the operating budget D. Budget as a reserve expense - Correct Answers ✅C Liability claims should be sent to the insurer: A. Requesting a public adjuster be assigned B. Without admitting negligence C. By the insurance trustee D. Within 72 hours of the incident - Correct Answers ✅B Where would a manager find guidelines regarding the associations responsibility for maintaining the physical assets? A. Equipment warranties B. Real estate sales contract C. Governing documents D. Board resolutions - Correct Answers ✅D Which type of maintenance should be manage with a routine maintenance contract? CMCA PRACTICE EXAM QUESTIONS & ANSWERS 2024 C. Maintenance responsibility chart D. Community asset inventory - Correct Answers ✅C On what basis is the community association reporting its finances when the financial reports indicate income when received and expenses when paid? A. Cash basis B. Modified accrual basis C. Accrued basis D. Modified cash basis - Correct Answers ✅A Community association managers must be familiar with Federal income tax requirements and options because: A. The RS will intermittently interview the manager concerning tax filing status. B. States require managers to be knowledgeable in this area of community association finance. C. Under federal tax code, all organizations are taxable on their income unless specifically exempted. D. The accountant will require input from the community association when the tax return is prepared. - Correct Answers ✅C The manager is not usually responsible for preparing the: CMCA PRACTICE EXAM QUESTIONS & ANSWERS 2024 A. Investment report B. Tax returns C. Annual Budget D. Variance report - Correct Answers ✅B What are the two essential financial documents the board of directors should use to determine the amount of funds available for an unbudgeted expense? A. Statement of cash flows and accounts receivable report B. Balance sheet and statement of revenue and expenses C. Statement of cash flows and check registers D. Replacement reserve report and general ledger - Correct Answers ✅B A significant decline in the amount of investments is most likely the result of: A. Failure to invest association funds properly B. Seasonal timing of expenses C. Expenditures out of reserve funds D. Failure to collect delinquent assessments - Correct Answers ✅C CMCA PRACTICE EXAM QUESTIONS & ANSWERS 2024 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 associations financial condition C. Is more easily understood by board members D. Can be accomplished more quickly - Correct Answers ✅B What is the purpose of a Management Letter? A. To note problem areas in an associations financial operations and recommend modifications and improvements. B. To serve as an audit engagement letter after selection of the auditor by the board. C. To outline the nature and scope of the propose audit D. To serve as a cover letter to an audit report distributed to association members - Correct Answers ✅A If you want to know the difference between actual and budget figures for a revenue account, to which documents should you refer? A. Balance Sheet and Budget B. Statement of Cash Flow and Budget C. Statement of Profit and Loss D. Statement of income and Expenses and Budget - Correct Answers ✅D CMCA PRACTICE EXAM QUESTIONS & ANSWERS 2024 If a proxy vote needs to be approved, the best option for an approver would be: A. The proxy giver B. The secretary C. A notary D. A witness - Correct Answers ✅B 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. Shared title with multiple owners - Correct Answers ✅A Board meeting minutes should include which of the following: A. names of all the members present B. summary of board remarks C. exact wording of each motion D. summary of owner comments - Correct Answers ✅C CMCA PRACTICE EXAM QUESTIONS & ANSWERS 2024 What is the primary source of requirements when developing the associations annual maintenance budget? A. Governing Documents B. State Law C. Annual Audit D. Reserve study - Correct Answers ✅A When the board reviews the proposed budget for approval, what should it consider? A. The financial effect on the owners B. The economic impact on tenants C. The financial position of the association D. The physical condition of the association members - Correct Answers ✅C Which method is the best alternative to increasing assessments? A. Reducing maintenance expenses by deferring repairs. B. Increasing income by charging higher user fees. C. Reducing maintenance expenses by selling common areas. D. Increasing income by opening a line of credit - Correct Answers ✅B