Practice Test GeeksCCM - Certified Community Manager Practice Test
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CCM Financial Management & Budgeting Flashcards

6 cards from real CCM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CCM Financial Management & Budgeting flashcards as text

  1. What is the term for the percentage of unit owners who have not paid their assessments?

    Answer: Delinquency rate

    Delinquency rate measures the proportion of owners behind on assessments and directly affects the association's operating cash flow.

  2. Which document outlines the process and timeline for placing a lien on a delinquent owner's property?

    Answer: Collection policy

    The association's collection policy details the escalation steps—late fees, demand letters, lien filing, and foreclosure—for delinquent accounts.

  3. Under generally accepted accounting principles (GAAP), how should community associations treat prepaid assessments collected before the period they cover?

    Answer: Record as a liability until earned

    Prepaid assessments are a liability (deferred revenue) until the period they apply to has passed, in accordance with accrual accounting.

  4. A community manager notices the association's operating fund balance is dangerously low in March. What is the MOST appropriate immediate action?

    Answer: Notify the board and present a cash-flow projection

    Prompt notification to the board with a cash-flow projection allows the board to evaluate options legally and within its fiduciary duty.

  5. Which type of insurance covers a community association's board members and officers against claims of wrongful acts in their governance role?

    Answer: Directors and officers (D&O) insurance

    D&O insurance protects board members from personal liability for decisions made in their official capacity as association directors.

  6. When a community association's reserve fund is below the recommended funding level, the association is said to be:

    Answer: Underfunded

    An underfunded reserve means the association lacks sufficient funds to cover projected repair and replacement costs, increasing the risk of special assessments.