Test Quiz

This type of accounting is when revenues are recorded when earned or billed, and expenses
are recorded when incurred or acquired.

• Modified Accounting

• Cash Accounting

• Expense Accounting

• Accrual Accounting

A summary of a community association's financial position at a given point in time is called:

• Delinquency Report

• Balance Sheet

• Income Statement

• Budget Analysis Detail

The funds used for the daily operations of the association is called?

• Operating Fund

• Assets

• Fund Balance

• Accounts Receivable

TRUE or FALSE: The costs of goods and services used to operate and maintain the community association are called "revenue."

• TRUE

• FALSE

A budget planning tool that identifies the current status of the reserve fund and a stable and equitable funding plan to offset anticipated future major expenditures is called?

• Funding Plan

• Baseline Funding

• Reserve Study

• Special Assessment

TRUE or FALSE: Cash accounting is when revenue is recorded when received and expenses are recorded when paid.

• True

• False

TRUE or FALSE: The CAM is responsible for notifying accounting when an expense
is no longer to be accrued.

• True

• False

The most appropriate funds used for major repairs and replacements are also known as?

• Contingency Funds

• Operating Funds

• Replacement Funds

• Reserves Funds

If a community association manager can analyze and interpret basic financial records, the manager is better able to:

• Assist the board in controlling the association's operations.

• Verify the accuracy of financial record keeping and reporting.

• Monitor the association's financial activity.

• All of the above.

TRUE or FALSE: A General Ledger is a record of all association financial transactions grouped by account number and/or category.

• True

• False