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2023 CMCA Real Exam with Answers (191 Solved Questions)

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    CMCA EXAM 2023 REAL EXAM 170 QUESTIONS AND CORRECT ANSWERS(VERIFIED ANSWERS)|AGRADE Why are special membership meetings held? - ANSWER- To conduct specific business Executive sessions should typically be used for discussing which of the following issues: - ANSWER- Member's delinquency Which of the following is a duty of a manager attending a board meeting? - ANSWER- Be the time keeper. If the governing documents and laws present conflicting notice periods, follow: - ANSWER- State laws. If an owner fails to receive notice of a meeting, the association is not responsible if the owner: - ANSWER- Did not notify the association of their current address. Board meeting minutes should include which of the following: - ANSWER- Exact wording of each motion. If a proxy vote needs to be approved, the best option for an approver would be: - ANSWER- The secretary. Where would a manager find guidelines regarding the association's responsibility for maintaining physical assets? - ANSWER- Board resolutions. The primary management control tool for identifying whether the association needs to maintain a particular property element is: - ANSWER- Maintenance responsibility chart. To determine which physical assets must be maintained by the association, the manager should: - ANSWER- Review the association governing documents. lOMoARcPSD|13778330

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    Which of the following is a common management control for ensuring maintenance work is performed in a timely manner? - ANSWER- A work order/response form. When monitoring maintenance of an association's swimming pool, which of the following should be entered into a permanent log at regular intervals? - ANSWER- Chlorine level readings. Which of the following is an example of an association control system? - ANSWER- Frequent neighborhood inspections. A work order: - ANSWER- Assigns maintenance tasks. Which type of maintenance should be managed with a routine maintenance contract? - ANSWER- Cutting the grass Which method is the best alternative to increasing assessments? - ANSWER- Increasing income by charging higher user fees. When the Board reviews the proposed budget for approval, what should it consider? - ANSWER- The financial position of the association. What is the primary source of requirements when developing the association's annual maintenance budget? - ANSWER- Governing documents. When an association contracts out all of its service and has no employees, it is a best business practice to: - ANSWER- Negotiate contracts within the bidding process. Directors and officers liability insurance is designed to cover claims resulting from: - ANSWER- Wrongful acts of employees of the association. A component of building ordinance insurance coverage includes: - ANSWER- Extra demolition. Which of the following types of insurance coverage is one of limited value to a community association? - ANSWER- Assessment fee receivable. What section of an insurance policy describes the coverage limits, deductibles, policy period, and premium? - ANSWER- Declaration page(s). lOMoARcPSD|13778330

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    To provide for payment of the insurance deductible, you would: - ANSWER- Allow for costs in the operating budget. Liability claims should be sent to the insurer: - ANSWER- Without admitting negligence. What does "Co-Insurance" obligate the Association to do? - ANSWER- Maintain certain limits of insurance. Legal review prior to executing a contract will assist the association in the event that: - ANSWER- The board has questions or concerns. In older condominiums, an association should have what type of contract covering mechanical equipment? - ANSWER- Preventive maintenance. Rather than describing the scope of work in detail in the contract, a manager may: - ANSWER- Attach bid specifications. Alternative dispute resolution includes which of the following methods? - ANSWER- Mediation. Employment contracts need not include: - ANSWER- Interests. In terms of compensation, a contract should state: - ANSWER- When and on what terms payment(s) will be made. Preparing a bid request includes which of the following? - ANSWER- Identifying potential contractors. For which project would a board most likely want to use a consultant to help develop bid specifications? - ANSWER- Repairing and/or replacing all roofs. In what type of a contract would a waiver of lien be recommended? - ANSWER- Re-roofing the buildings. When a dispute is mediated, an uninvolved third party facilitates discussion and: - ANSWER- Assists both parties in reaching a mutually acceptable agreement. lOMoARcPSD|13778330

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    You have a proprietary lease in XYZ development. Which of the following best describes your interest in the property? - ANSWER- Stock membership. Management conducts its tasks for the day to day operation of the association in accordance with the: - ANSWER- Contract. The Board of Directors receives its authority to perform its specific duties through the: - ANSWER- Governing documents. Which of the following is within the authority of the Board of Directors? - ANSWER- Establishing programs. In preparing the association's annual financial report, many governing documents specify: - ANSWER- Retaining an independent certified public accountant. 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? - ANSWER- The offer to meet to hear the owner's viewpoint. In the hierarchy of a community association's governing documents, which of the following is the highest authority? - ANSWER- Declaration. When developing a rule, it must be consistent with: - ANSWER- Applicable statutes and governing documents. A board exercises its fiduciary responsibility by: - ANSWER- Establishing internal controls. The primary purpose of a community association is to: - ANSWER- Deal with governance and business. Who has the ultimate responsibility for the care and maintenance of the common areas, facilities, and physical property? - ANSWER- The Board of Directors. What "duty" do the Board members and the manager have to the members? - ANSWER- Loyalty. Which of the following would impact the operation of a newly installed entry control system? - ANSWER- Communicating the access control policy to residents. lOMoARcPSD|13778330

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    Which of the following has the greatest regulatory influence on the management of a community association? - ANSWER- Specific state statutes. What are the two essential financial documents the board of directors should use to determine the amount of funds available for an unbudgeted expense? - ANSWER- Balance sheet and statement of revenue and expense. What is the purpose of a Management Letter? - ANSWER- To note problem areas in an association's financial operations and recommend modifications and improvements. The interim financial report should, at minimum, include a: - ANSWER- Statement of income and expenses, account balance, and a balance sheet. The manager is not usually responsible for preparing the: - ANSWER- Tax returns. Your association just completed the eighth month of its fiscal year. Which financial report would be most useful to project year end expenses? - ANSWER- Statement of revenue and expense. A significant decline in the amount of investments is most likely the result of: - ANSWER- Expenditures out of reserve funds. If you want to know the difference between actual and budget figures for a revenue account, to which documents should you refer? - ANSWER- Statement of Income and Expenses and Budget The best reasoning for recommending the modified accrual accounting method is that, compared to cash accounting, it: - ANSWER- More accurately reflects the association's financial condition. On what basis is the community association reporting its finances when the financial reports indicate income when received and expenses when paid? - ANSWER- Cash basis. Community association managers must be familiar with Federal Income Tax requirements and options because: - ANSWER- Under Federal Tax code, all organizations are taxable on their income unless specifically exempted. lOMoARcPSD|13778330

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    The purpose of a personnel manual or employee handbook is to: - ANSWER- Explain employee rights and responsibilities. When staff members help to develop policies and procedures, they are more: - ANSWER- Committed to implement them. Which tool is most effective for defining the employee's duties? - ANSWER- Job description. Discipline as part of the HR management can include: - ANSWER- Counseling the employee. What is the best way to communicate management's expectation for an employee to complete regular and special tasks during a certain time-period? - ANSWER- Establishing performance goals. In preparing the association's annual financial report, many governing documents specify: - ANSWER- Retaining an independent certified public accountant When a dispute is mediated, the uninvolved third party facilitates discussion and - ANSWER- Assists both parties in reaching a mutually acceptable agreement When developing a rule, it must be consistent with.... - ANSWER- Applicable statues and governing documents What would impact the operation of a newly installed entry control system? - ANSWER- Communicating the access control policy to residents The BOD receives its authority to perform its specific duties through the: - ANSWER- governing documents What has the greatest regulatory influence on the management of a community association? - ANSWER- specific state statutes What duty does the BOD and manager have to its members? - ANSWER- Loyalty management conducts its day to day operation of the association in accordance with: - ANSWER- contract lOMoARcPSD|13778330

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