CCM CCM Financial Management & Budgeting 2

Question 1

A community association wants to levy a special assessment to fund an emergency roof replacement. Which action is typically required FIRST?

Accepted Answer

Obtain board approval per the governing documents

Answer

Governing documents typically require board approval—and sometimes a member vote—before levying a special assessment; the board must act first.

Question 2

Which financial statement shows an association's assets, liabilities, and equity at a specific point in time?

Accepted Answer

Balance sheet

Answer

The balance sheet (statement of financial position) is a snapshot of assets, liabilities, and net assets on a given date.

Question 3

What does an accounts receivable aging report help a community manager monitor?

Accepted Answer

Delinquent assessment collections by how overdue they are

Answer

An AR aging report categorizes outstanding balances by how long they have been unpaid, helping managers prioritize collection efforts.

Question 4

When preparing a bid comparison for a major landscaping contract, a community manager should ensure bids are evaluated on the basis of:

Accepted Answer

Equivalent scope of work across all vendors

Answer

Comparing bids is only meaningful when all vendors price identical scopes of work; otherwise cost differences reflect scope differences, not vendor efficiency.

Question 5

Which internal financial control best prevents unauthorized disbursements in a community association?

Accepted Answer

Dual-signature requirement on checks above a threshold

Answer

Requiring two signatures on checks above a set dollar amount ensures no single individual can authorize large disbursements alone.

CCM - Certified Community Manager Practice Test

CCM - Certified Community Manager Practice Test

CCM CCM Financial Management & Budgeting 2