How is revenue defined in a community association context?

How is revenue defined in a community association context?

• A. The total depreciation of assets.
• B. The collective items or amounts of income appropriated for public expenses.
• C. Profits from selling common property.
• D. Donations from residents.

Answer: (B)

In a community association, revenue means the inflow of funds that the association collects to pay for its public or common-area expenses. This includes regular assessments and other income that residents’ payments are designated to cover maintenance, utilities for common spaces, insurance, and services benefiting the community. Depreciation is not cash coming in, so it isn’t revenue. Profits from selling common property are capital gains from a one-time transaction, not ongoing revenue. Donations can be income, but the phrase “income appropriated for public expenses” captures the purpose and use of revenue in supporting the community’s public needs, making that option the best fit.

In a community association, revenue means the inflow of funds that the association collects to pay for its public or common-area expenses. This includes regular assessments and other income that residents’ payments are designated to cover maintenance, utilities for common spaces, insurance, and services benefiting the community. Depreciation is not cash coming in, so it isn’t revenue. Profits from selling common property are capital gains from a one-time transaction, not ongoing revenue. Donations can be income, but the phrase “income appropriated for public expenses” captures the purpose and use of revenue in supporting the community’s public needs, making that option the best fit.