Strata Management Licensing Practice Exam · Question
For Strata Plan LMS7788 in Langley, the operating budget for 2024 is $220,000. This includes $20,000 for planned landscaping improvements. How should the strata manager, Emily White, categorize the $20,000 for landscaping within the financial statements?
Routine landscaping improvements are generally considered operating expenses and should be included as a line item within the operating fund activities in the f
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Question: For Strata Plan LMS7788 in Langley, the operating budget for 2024 is $220,000. This includes $20,000 for planned landscaping improvements. How should the strata manager, Emily White, categorize the $20,000 for landscaping within the financial statements?
Answer options:
- As an expense in the contingency reserve fund.
- As a capital expenditure, separate from the operating fund. ✅ As a line item within the operating fund expenses.
- As a special levy.
Correct answer: As a line item within the operating fund expenses.
Explanation: Routine landscaping improvements are generally considered operating expenses and should be included as a line item within the operating fund activities in the financial statements, as per Section 92 of the Strata Property Act which governs operating budgets.
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