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CMCA EXAM 2024 ACTUAL EXAM
COMPLETE 280 QUESTIONS AND DETAILED
ANSWERS RATED A | BRAND NEW!!!
A legal proceeding filed in court whereby a party with a claim against an owner can claim ownership of the unit involved in order to recover the money it is owed; the unit is usually auctioned by the court and sold to the highest bidder foreclosure the collection of all assessments due through the end of the fiscal year (e.g., if an owner's payments on the annual assessment are due monthly and become delinquent at the end of March, all monthly payments through December of that year are due immediately) acceleration combines operating and reserve activities in the same column, as opposed to fund reporting, which consists of preparing separate columns for operating, reserve and any special fund commercial reporting method
the owner's financial obligation to the community association during a given period of time—usually one year—that covers the owner's share of the common expense (also known as "common expense liabilities" in some states) assessment this clause states that if a court finds that any clause of the contract is illegal or unenforceable, that clause shall be separated from the rest of the contract, so that the whole contract need not be invalidated Severability provision a document which gives up the right to make a claim against the community association for payments not received waiver of lien
called a reorganization because it is designed to allow for an orderly payment to creditors that enable a corporation to continue Chapter 11 bankruptcy used to reorganize personal or non-corporate debt; a plan is submitted to a judge for paying off all or nearly all of the debt over a specified period of time Chapter 13 bankruptcy a document from the CPA that states that the information the community association provides is true to the best of its knowledge representation letter a summary of the flow of funds into and out of the community association; summaries are prepared for normal operations, investment activities, and any borrowing activities statement of cash flows
method of recording income when it is earned (or assessed to owners) and expenses when they are incurred or acquired accrual basis of accounting requires that the person who owes money receive written notice fair debt collection practices act a legal claim by one party (community association) on the property of another (delinquent owner) to obtain the payment of a debt or the satisfaction of an obligation that protects the community association's interests lien
method of recording income when it is collected and expenses when they are paid cash basis of accounting when reinvested together with its accumulated interest, the ultimate yield will be higher than the stated rate of interest certificate of deposit a presentation of financial statements by a CPA without the assurance that the information conforms to GAAP (Generally Accepted Accounting Principles) compilation an accountant who has passed certain examinations and met statutory and licensing requirements of a US state CPA
when hiring a CPA, he or she will send a written description of the nature of the work to be done, type of report to be prepared, fee for services and time frame for the assignment engagement letter a government agency that guarantees investors' deposits in member institutions FDIC (Federal Deposit Insurance Corporation) consists of preparing separate columns for operating, reserve, and any reports from different organizations fund reporting method their purpose is to provide uniformity among reports from different organizations GAAP (Generally Accepted Accounting Principles)
method of recording income and expenses on a cash basis with selected items recorded on an accrual basis; modified cash varies in format depending on the number of items accrued modified cash basis of accounting the amount left after deducting expenses from income net income occurs when expenses are greater than income net loss accompany the CPA-prepared financial statements providing additional information to help the reader understand the community association's financial situation notes to financial statements
report that records the community association's financial transactions during a given period of time—generally for a given month plus the fiscal year to date; it is a way to keep track of the community's financial activity statement of income and expense short-term instruments that mature in 13, 26, or 52 week periods; they are issued in minimum denominations of $10,000—anything larger must be in $5,000 increments; as soon as one is purchased, the buyer receives the promised earnings, then, when the bill matures, the buyer receives the face value (value indicated in the wording of the T-bill) treasury bills whereas treasury notes mature in one to 10 years, these type of funds mature in more than 10 years; both are issued in denominations from $1,000 to $100,000 and are also interest- bearing with interest paid every six months; when either matures, the buyer receives the full face value treasury bonds
this section of the insurance policy is like the title page of a book; it typically includes such information as the name and address of the insured and the period of coverage common declarations these are the basic provisions that apply to all insurance coverages in the package (e.g., when to file proof of a loss or what happens when a premium is not paid) common policy conditions covers the value of any undamaged portion of a building which may have to be replaced because of building laws contingent liability this involves entering into a contract that will, among other things, transfer the community association's legal responsibility for any loss
contractual transfers allows an owner to bring a claim against his or her community association; this coverage is in the owner's interest—it is standard for owners to be insured in this coverage for condominiums and cooperatives, while planned communities must see to it that this concept is present in their coverage cross liability this insurance is designed to pay for damages arising from wrongful acts that do not lead to property damage, bodily injury, advertising injury, or personal injury directors and officers liability insurance comprised of employees of a single insurance company who only place the insurance of that company direct writer system of insurance
fidelity insurance policies for owner-occupied units; HO-4 is a tenant's policy and HO-6 is a policy for a condominium or cooperative unit owner HO-1,-2, - 3, - 4, - 5, - 6 policies arise when a person or entity threatens or actually brings a legal claim against the community association, its members or others whom it must reimburse by contract (such as a management company) liability exposure to loss harm arising from libel, slander, false arrest, invasion of privacy, wrongful entry, or malicious prosecution Personal Injury (PI)
inventory, furniture, fine arts, equipment, supplies, machinery, electronic data processing (EDP), and valuable papers and records personal property define the type of insurance coverage provided, for example, property, liability and boiler and machinery; they also define how comprehensive each type of coverage is—what is included and what is excluded policy forms loss related to either tangible community association property (buildings and contents) or intangible association property (information, proprietary Web site, etc.) property exposure to loss includes buildings, land, and the newest type of property exposure real property
the ability to respond to unpredictable problems (for example, sewer backups, slope failures, roof leaks and frozen pipes); the key to a successful response is to anticipate the different possibilities—and to develop a plan for responding to each one emergency services maintenance the process of operating, maintaining, repairing, and replacing common property—that is, the common elements or areas facilities management commonly called a "punch list," this is a compilation of all the maintenance needs identified during a walk-through inspection report a useful management control to record various vendor services and information needed in case of an emergency maintenance contact sheet
tells you when the maintenance was actually done maintenance record any means used to track, record, remind or command attention; usually these means are forms or documents management control this is periodic upkeep to avoid disruptive breakdowns and to prolong the useful life of the physical asset in question preventative maintenance requested by an owner, a tenant, or the board—or identified during routine inspection of the property requested or corrective maintenance
