CMCA REAL EXAM | COMPREHENSIVE
QUESTIONS AND CORRECT
ANSWERS | GRADED A+ | 2024 GUIDE
The manager is not usually responsible for preparing the:
A. Investment report
B. Tax returns
C. Annual Budget
D. Variance report
- Correct Answer - B
What are the two essential financial documents the board of
directors should use to determine the amount of funds available
for an unbudgeted expense?
A. Statement of cash flows and accounts receivable report
B. Balance sheet and statement of revenue and expenses
C. Statement of cash flows and check registers
D. Replacement reserve report and general ledger
- Correct Answer - B
A significant decline in the amount of investments is most likely
the result of:
A. Failure to invest association funds properly
B. Seasonal timing of expenses
,C. Expenditures out of reserve funds
D. Failure to collect delinquent assessments
- Correct Answer - C
The best reasoning for recommending the modified accrual
accounting method is that, compared to cash accounting, it:
A. Will make future audit work more accurate
B. More accurately reflects the associations financial condition
C. Is more easily understood by board members
D. Can be accomplished more quickly
- Correct Answer - B
What is the purpose of a Management Letter?
A. To note problem areas in an associations financial
operations and recommend modifications and improvements.
B. To serve as an audit engagement letter after selection of the
auditor by the board.
C. To outline the nature and scope of the propose audit
D. To serve as a cover letter to an audit report distributed to
association members
- Correct Answer - A
If you want to know the difference between actual and budget
figures for a revenue account, to which documents should you
refer? A. Balance Sheet and Budget
, B. Statement of Cash Flow and Budget
C. Statement of Profit and Loss
D. Statement of income and Expenses and Budget
- Correct Answer - D
Your association just completed the eight month of its fiscal
year. Which financial report would be most useful to project
year end expenses?
A. Statement of revenue and expenses
B. Balance sheet
C. Statement of cash flows
D. Accounts payable report
- Correct Answer - A
The interim financial report should, at a minimum, include a:
A. Statement of changes in members equity, cash flow
analysis, and notes to financial statements.
B. Statements of reserve funding, investment results, and
accounts receivable.
C. Statement of income and expenses, account balances, and
a balance sheet.
D. Statement of cash flow, balance, and bank statements.
- Correct Answer - C
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