CMCA - Certified Manager of Community Associations CMCA-FREE Cmca 1

Question 1

A homeowner disputes an assessment charge and requests a hearing before the board. Under most state statutes and governing documents, the board is required to:

Accepted Answer

Provide the homeowner with a reasonable opportunity to be heard before imposing any fine or lien

Answer

Waive the charge immediately to avoid legal conflict

Answer

Refer the matter directly to the association's attorney without further board involvement

Answer

Table the dispute until the next annual meeting when all homeowners can vote on it

Question 2

Which financial statement best shows whether an association can meet its short-term obligations as they come due?

Accepted Answer

Balance sheet with current assets and liabilities highlighted

Answer

Income statement (profit and loss)

Answer

Reserve fund schedule

Answer

Year-end audit report

Question 3

A community association's reserve study is most useful for:

Accepted Answer

Determining how much to collect and save for major component repair and replacement over time

Answer

Setting annual operating budget line items for routine maintenance

Answer

Calculating the management fee owed to the community manager

Answer

Establishing fines for covenant violations

Question 4

When an association board enters executive session, the primary purpose is to:

Accepted Answer

Discuss sensitive matters such as litigation, contract negotiations, or personnel issues outside of the open meeting

Answer

Conduct a vote on the annual budget in private to avoid homeowner interference

Answer

Exclude board members with a conflict of interest from routine business discussions

Answer

Permanently seal the minutes from that portion of the meeting from all homeowners

Question 5

An association manager discovers that the board approved a contract with a vendor owned by the board treasurer without disclosing the relationship. This situation is best described as:

Accepted Answer

A conflict of interest that should have been disclosed and recused before the vote

Answer

A permissible transaction as long as the price is competitive

Answer

An arms-length transaction because the board voted on it collectively

Answer

A routine business decision within the board's sole discretion

Question 6

Which of the following actions would most directly help an association manager ensure that a vendor contract protects the association's interests?

Accepted Answer

Reviewing the contract for scope of work, indemnification, insurance requirements, and termination clauses before execution

Answer

Allowing the vendor to use their own standard contract without modification

Answer

Having the board president sign immediately to secure the vendor's availability

Answer

Asking the vendor to provide references rather than reviewing contract terms