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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

  1. Which budgeting approach requires each department to justify all expenditures from scratch each fiscal year?

    Answer: Zero-based budgeting

    Zero-based budgeting requires all expenses to be re-justified each period rather than using prior-year figures as a baseline.

  2. A park district's capital improvement plan (CIP) typically covers what time horizon?

    Answer: 5–10 years

    Capital improvement plans typically span 5–10 years to allow for long-range infrastructure planning and funding allocation.

  3. Which financial ratio measures an agency's ability to meet short-term obligations?

    Answer: Current ratio

    The current ratio (current assets divided by current liabilities) indicates whether an agency can cover its short-term debts.

  4. Enterprise fund accounting is used in parks and recreation primarily to:

    Answer: Account for activities that are largely self-supporting through user fees

    Enterprise funds are used for government activities that recover costs primarily through charges to users, such as golf courses or aquatic centers.

  5. Which standards body governs the financial reporting requirements for local government agencies including park districts?

    Answer: GASB

    The Governmental Accounting Standards Board (GASB) sets accounting and financial reporting standards for state and local governments.

  6. A park agency receives a $500,000 grant that must be spent on trail construction only. This is best classified as:

    Answer: Restricted revenue

    Restricted revenue is funding that must be used for a specific purpose as designated by the grantor.