CAM Quiz Unit 7 PDF

## UNIT 7 QUIZ 1. How often is a budget prepared? - Monthly - Every 6 months - Annually - Every other year 2. Who establishes the procedures for preparing and implementing association budgets? - Condominium and Cooperative Acts - The association - The municipality -...

## UNIT 7 QUIZ 1. How often is a budget prepared? - Monthly - Every 6 months - Annually - Every other year 2. Who establishes the procedures for preparing and implementing association budgets? - Condominium and Cooperative Acts - The association - The municipality - The board of directors 3. Which MUST be included in community association budgets? - Estimated revenues and expenses for the next 12 months - Estimated surplus and deficit of the last 12 months - Outline all fees and charges for recreational amenities - All of these 4. If an expense category doesn't apply to an association, how should the association note this in the budget? - Delete the category from the budget. - State that the category doesn't apply on the line item. - State “Association doesn’t know” on the line item. - Make up a number for that particular line item. 5. What is the term for the funds set aside for expenses that occur less often than annually? - Reserve funds - Rainy day funds - Open funds - Future funds 6. Items for which replacement or deferred maintenance costs exceed a certain amount must be included in the budget. What is this limit? - $5,000 - $10,000 - $15,000 - $20,000 7. How many days prior to a meeting in which the budget will be considered MUST condominium associations send written notice to their members? - 3 days - 7 days - 14 days - 21 days 8. In addition to a master association budget, what else MUST multi-condominium associations prepare? - A list of other condominiums it operates - A separate budget for each condominium it operates - Nothing else; the master association budget covers it all. - A bank account statement from one of the condominiums it operates 9. When an association is calculating the 115% increase over the budget from the previous year, which should they NOT include? - Reserves - Expenses that aren't anticipated annually. - Assessments for improvements - None of these should be included in the calculation 10. When is a special assessment levied? - To cover expenses over and above those anticipated in the annual budget. - To fund deferred maintenance not provided for in reserve accounts. - To fund capital improvements not provided for in reserve accounts. - All of these