Finance and Budgeting Flashcards
6 cards from real CPRE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Finance and Budgeting flashcards as text
Which cost allocation method assigns indirect costs based on specific activities that drive those costs?
Answer: Activity-based costing
Activity-based costing assigns indirect costs to cost objects based on the activities that drive those costs.
Depreciation on park infrastructure is recorded primarily to:
Answer: Match the cost of long-lived assets with the periods they benefit
Depreciation allocates the cost of a capital asset over its useful life to match expense recognition with the benefit period.
A park district issues general obligation bonds. The primary security pledged to bondholders is:
Answer: The full faith and credit and taxing power of the government
General obligation bonds are backed by the issuer's pledge of its full faith and credit, including the power to levy taxes.
A cost-benefit analysis for a new recreation center should express benefits and costs in:
Answer: Present value terms
Cost-benefit analysis converts all future cash flows to present value to allow valid comparison on a common time basis.
Which financial document provides a snapshot of an agency's assets, liabilities, and net position at a specific point in time?
Answer: Statement of net position
The statement of net position (balance sheet) presents assets, liabilities, and net position as of a specific date.
When a park agency's actual revenues fall short of budgeted revenues mid-year, the recommended first response is to:
Answer: Implement a budget amendment reducing expenditure appropriations
A budget amendment formally adjusts appropriations to reflect revised revenue projections and maintain fiscal balance.