Cam Exam 2014 Practice Test

Front 1

COST CONSCIOUS CONDOMINIUM is presently preparing their annual budget.
Expenses on the proposed budget are to be listed by:

Back 1

account and classification

Front 2

A majority of the members of a condominium may vote to __________ the collection
of a reserve for a roof replacement costing an estimated $21,470.

Back 2

waive

Front 3

Members of a condominium must be provided at least how many days' notice of a
budget meeting.

Back 3

14

Front 4

What percentage of the voting interest in a condominium association must petition the
board to reconsider the present year's budget if the new assessment for operation
expenses is in excess of 115% of the previous year’s assessment for operating
expenses?

Back 4

10%

Front 5

Reserve funds:

Back 5

may be used only for the purpose for which they are collected unless otherwise
approved by the membership.

Front 6

Before determining the individual assessments, monies generated by other revenue
sources should be _____________ by the board from the total needed to fund the
budget.

Back 6

deducted

Front 7

There is no mention of the collection of assessments in a cooperative’s documents.
Florida law requires condominium and cooperative unit owners’ assessments to be
collected at least every:

Back 7

three months.

Front 8

When Bob Bad-Credit's assessment becomes delinquent, the association may file a
____________________________________ to protect their interest.

Back 8

claim of lien

Front 9

Owner Sam Smith is considering selling his unit in the LAKE FRONT
CONDOMINIUM. He makes a request to the board to verify all assessment amounts
presently outstanding on his unit. Once received, the assessment certificate:

Back 9

may be presumed to be accurate by any person receiving it.

Front 10

HEAVENLY REST CONDOMINIUM ASSOCIATION has 80 units and receipts of
$175,000.00 per year. Which of the following statements is correct?

Back 10

The association must comply with the special accounting requirements and
provide formal financial statements.

Front 11

If the special financial statement accounting requirements of the BUILT-WELL
CONDOMINIUM are waived, the association need only prepare a (an):

Back 11

report of actual receipts and expenditures.

Front 12

Condominium associations having annual receipts of at least $300,000.00 but less than
$500,000.00 must deliver to unit owners which of the following types of financial
statements unless waived?

Back 12

Reviewed.

Front 13

All associations _________________________________ to file an annual income tax
return.

Back 13

are required

Front 14

Each community association formed as a corporation must file the annual corporate
report with the:

Back 14

Department of State

Front 15

True or False: The developer must provide an audit of the financial records from the date of conception of the association or from the date of the last audit.

Back 15

True

Front 16

When estimating reserve requirements, the CONSERVATIVE COOPERATIVE
ASSOCIATION will consider:

Back 16

estimated replacement cost of the capital item and estimated useful life.

Front 17

The budget of the association

Back 17

may be approved by the membership or board as determined by the community
documents.

Front 18

To reconsider a budget of a condominium that was adopted by the board:

Back 18

The original budgets must have been board-approved and the new assessment for
operating expenses must be greater than 115 % of the prior year's assessment for
operating expenses

Front 19

It is best for the non-profit association of the MIGHTIER THAN THOU
CONDOMINIUM to use Section 528 of the IRS code because:

Back 19

reserves for the replacement of capital improvements and deferred maintenance
will not be taxed.

Front 20

In a condominium association, approval to use reserves for purposes other than
originally intended requires:

Back 20

approval of the majority of those present at a valid meeting of the association.

Front 21

In condominiums and cooperatives, which of the following budgetary line items would
be EXCLUDED from the calculation used in determining the percentage of budget
increase for purposes of determining the 115% increase in operating assessments?

Back 21

Reserves for capital improvements.

Front 22

Which of the following should determine whether the budget at a community
association is adopted by the membership or a vote of the board of directors?

Back 22

The association documents.

Front 23

In almost all circumstances, the power to make assessments belongs to the:

Back 23

association's board of directors.

Front 24

A (An) _________________ assessment is levied to cover expenses anticipated to
exceed the annual budget.

Back 24

special

Front 25

In condominiums, the requirements for reviewed, compiled, or audited financial
statements may be waived on an annual basis by:

Back 25

a majority of the voting interest at a duly called meeting.

Front 26

A claim of lien filed on a unit must be recorded with the:

Back 26

clerk of the circuit court.

Front 27

In condominium and cooperative associations, claims of lien are effective from the
time of recording for a period of:

Back 27

one year.

Front 28

If the board of directors of a condominium does not give 30 days' written notice of its
intention to foreclose on a unit, the association:

Back 28

waives its rights to attorney's fees.

Front 29

In a community association, the responsibility to keep a record of unit assessments
rests with the:

Back 29

board of directors.

Front 30

If a condominium unit owner requests a certificate stating the status of that person's
assessments, the board must be prepared to deliver the certificate within __________
days.

Back 30

15

Front 31

Condominium associations having annual receipts in excess of $ 150,000 but less than
$300,000 must, unless waived by vote of the membership, deliver to unit owners a
(an):

Back 31

compiled financial statement

Front 32

A condominium association requiring an "audited" financial statement will have
receipts of at least:

Back 32

$500,000.

Front 33

Each community association must file an annual corporate report on forms setting
forth, among other information, the corporate name, address of the principal office of
the association, and corporate federal tax identification number. The report and a fee
must be filed with the:

Back 33

Florida Department of State.

Front 34

Property taxes on the common property of a condominium:

Back 34

are assessed against individual units.

Front 35

If the association wants to provide cable TV service:

Back 35

The cost can be a common expense if allowed in the documents or if a contract
designates it as such.