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CMCA - M100 Exam Complete Questions and Answers 2025.
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CMCA - M100 Exam Complete Questions and Answers 2025.
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1CMCA - M100 Exam Complete Questions and Answers 2025
55 and older community - Correct Answer-Must have one
person who is 55 years of age or older living in at least 80% of
its occupied units. The community must be designated "55
and older" to qualify as this type of housing that legally
prohibits children and limits occupancy to a certain age span.
The designation process involves submitting applications and
obtaining approval before any enforcement of the ages of
residents commences. Approval from the Department of
Housing and Urban Development (HUD) must be received
before construction begins.
Abstention - Correct Answer-Is to not cast a vote. Board
members should abstain from voting only for clearly stated
reasons such as a conflict of interest or ignorance of the
matter at hand.
Acceleration - Correct Answer-The collection of all
assessments due through the end of the fiscal year.
Acceleration is a technique used to collect assessments from
habitually delinquent owners.
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Accrual basis of accounting - Correct Answer-Records revenue
when it is earned and expenses when they are incurred. It
provides an accurate picture of the association's financial
condition. GAAP (Generally Accepted Accounting Principles)
requires the use of accrual accounting.
Action item list - Correct Answer-A list of actions to be taken
before the next board of directors meeting as a result of
decisions made at the current one or between meetings. An
action item list contains the decisions to be implemented
together with the names of those assigned implementation
responsibility. Excel, Google Docs and Microsoft Outlook Tasks
may be useful programs for helping you compile your action
item list.
Actual cash value (ACV) - Correct Answer-ACV is the
depreciated value of an item, commonly used in property
insurance coverage.
Workers' Compensation Insurance - Correct Answer-A
common insurance coverage and endorsement for personnel
exposures to loss—in this case, loss of services due to injuries
received while working on behalf of the community
association. State statutes determine the classes of employees
to be insured and coverage for loss of services due to
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employment related injuries. In most states, workers'
compensation insurance is obtained from commercial
insurers. Coverage for associations with no employees is rated
on an "if any employee" basis and usually is a minimum
premium. Every community association should consider
obtaining workers' compensation insurance.
Wrongful acts - Correct Answer-Legal claims can be brought
against a community association based on the manner in
which it conducts its business. Examples of "wrongful acts"
include the failure to file taxes, collect assessments, maintain
replacement reserves, or deliver core services to its residents
(member/owners and tenants). Directors and officers (D&O)
liability 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.
Yield - Correct Answer-One of three essential investment
objectives for community associations, yield is the amount of
return on an investment. The other two essential investment
objectives are liquidity and safety.
Zero-base budgeting - Correct Answer-A method of budget
preparation where all amounts are set to zero and the budget
amount must be justified, instead of assuming the line item is
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needed and adjusting the amount for the coming year. The
zerobase approach keeps you from accepting this year's
figures at face value. It requires you to analyze the reasons for
the actual amounts spent. The actual dollar figure may be less
or more than the budgeted figure because of circumstances
you cannot assume will exist during the coming year. For
example, lawn maintenance costs during a dry season will be
low— but a community cannot assume that the coming year
will be just as dry.
Work order/response form - Correct Answer-A form for
assigning maintenance work to be done. With some planning,
it can be used— To document owner and tenant requests To
assign maintenance tasks to both maintenance staff and
contractors As a response form to be returned to an owner or
tenant, indicating that work was completed or confirming that
it was assigned As a basis for allocating charges, when
appropriate A work order/response form has several benefits.
It— Identifies whether the need is an emergency or not
Requires attention Allows follow-up to evaluate satisfactio
Provides a means of monitoring costs Provides a history of the
repairs that have been made Documents any problems with
contractors reported by owners or tenants Indicates if the
work is a recurring problem necessitating further evaluation
Most software programs have work order/response forms as
part of their system.
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