FREE CMCA MCQ Questions and Answers Flashcards

An owner submits an architectural request and the board does not respond in the time the governing documents allow. In many documents, the result is:

Answer: The request may be deemed approved

Many declarations include a deemed-approval clause if the architectural committee or board misses the review deadline.

Which financial report compares actual income and expenses with budgeted amounts?

Answer: Budget comparison (budget vs. actual) statement

A budget-vs-actual statement shows variances so the board can spot overspending or revenue shortfalls.

What is a quorum?

Answer: The minimum number of members or directors that must be present for business to be validly conducted

Without a quorum, as defined in the bylaws or by statute, a meeting cannot take binding action.

Under the accrual basis of accounting, revenue is recorded when:

Answer: It is earned, such as when assessments are levied, whether or not cash has been received

Accrual accounting records income when earned and expenses when incurred, regardless of when cash moves.

When the manager hires a contractor, which document should be collected before work begins to protect the association?

Answer: A certificate of insurance naming the association as additional insured

A current certificate of insurance confirms the contractor carries liability and workers' compensation coverage that protects the association.

Which action best reflects the duty of loyalty owed by a board member?

Answer: Disclosing a conflict of interest and abstaining from the related vote

The duty of loyalty requires directors to put the association's interests ahead of their own and to avoid undisclosed conflicts.

A storm damages several roofs, and the association's property policy has a large deductible. Who usually pays the deductible?

Answer: The association, or unit owners if the governing documents or statute allocate it to them

Deductibles are paid by the insured association unless the governing documents or state law shift responsibility to the responsible or affected owners.