CMCA MCQ 3

Question 1

A condominium association's roof needs replacement costing $300,000, but reserves only hold $80,000. What funding option would spread the cost among owners over time without a lump-sum payment?

Accepted Answer

Reserve loan

Answer

A reserve loan allows the association to borrow funds for the repair and repay over time, avoiding a large immediate special assessment on owners.

Question 2

Which body typically has the authority to adopt and amend association rules and regulations without a membership vote?

Accepted Answer

The board of directors

Answer

Most governing documents delegate authority to the board of directors to adopt reasonable rules and regulations governing the community.

Question 3

An owner installs a satellite dish on a common area roof without approval. Under the FCC's OTARD rule, the association:

Accepted Answer

May require removal since common areas are not exclusive use

Answer

OTARD protects antenna installations on areas within the owner's exclusive use or control; common area roofs fall outside that protection.

Question 4

What is the primary purpose of an architectural review committee (ARC) in a community association?

Accepted Answer

To maintain the appearance and integrity of the community

Answer

The ARC reviews proposed modifications to ensure they conform to community standards, preserving aesthetic consistency and property values.

Question 5

Which accounting method records income when earned and expenses when incurred, regardless of when cash is received or paid?

Accepted Answer

Accrual basis accounting

Answer

Accrual basis accounting matches revenues to the period they are earned and expenses to the period incurred, giving a more accurate financial picture.

CMCA - Certified Manager of Community Associations Practice Test

CMCA - Certified Manager of Community Associations Practice Test

CMCA MCQ 3