CMCA Exam Study Guide | Complete
and Correctly Answered | Rated A+ |
2024/2025 Guide
Accrual Basis of accounting - Correct Answer - records income
when it is earned (or assessed to owners) and expenses when
they are incurred or aquired.
Audit - Correct Answer - to check the accuracy of financial
accounts and records
Certificate of Deposit (CD) - Correct Answer - A savings
alternative in which money is left on deposit for a stated period
of time to earn a specific rate of return.
Commercial reporting method - Correct Answer - Combines
operating and reserve activities in the same column, as
opposed to fund reporting, which consists of preparing separate
columns for operating, reserve and any special funds.
compilation - Correct Answer - a presentation of financial
statements by a CPA without the assurance that the information
conforms to GAAP
,GAAP - Correct Answer - Generally Accepted Accounting
Principles. Year end reports, balance sheet, reserve/expense,
cash flow statement, notes to financials
Rule Variance process - Correct Answer - 1. Impact violation
has on community
2. business decision with community in mind
3. document the decision making for variance/exception
ex. at home business
Balance Enforcement - Correct Answer - satisfaction vs
enforcement of the law
having compliance is more desirable to law ruling
Budget Requirements: Federal - Correct Answer - must
conform to IRS, EPA, FAA
Budget Requirements: State - Correct Answer - insurance,
workers comp
Budget Creation: Start of Year - Correct Answer - execute and
manage budget
Mandatory Line Item - Correct Answer - needs/requirements
Discretionary Line Items - Correct Answer - likes/wants
Expense Calculating: Zero-base expense - Correct Answer -
set to 0, amounts allotted must be split/justified. Discretionary
, Expense Calculating: Historical Trending - Correct Answer - use
previous & adjust for expectations of increases. Mandatory
Expense Calculating: Combined Method - Correct Answer -
combines both methods for discretionary and mandatory
calculating
Reserve Study - Correct Answer - a budget planning tool that
considers the current status of the replacement fund and
determines a stable and equitable funding plan to offset the
anticipated future major common area expenditures. Addresses
all physical elements to repair/replace/maintain.
benefits: liability, planning, state requirements
Special Assessment - Correct Answer - Levied to cover major
expense/repairs that is not budgeted for
Associations Authority to Collect Assessments - Correct Answer
- Governing Documents, State Statutes (procedures), Federal
law & regulation (fair debt collection act)
Collection Policy Purpose - Correct Answer - For maintaining
cash flow, reducing loss on payments
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