Practice Test GeeksCPRP - Certified Park and Recreation Professional Practice Test
← All CPRP Flashcard Decks

Administration & Finance Flashcards

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

Read the first 7 Administration & Finance flashcards as text

  1. Which budgeting approach requires managers to justify every expenditure from zero each budget cycle?

    Answer: Zero-based budgeting

    Zero-based budgeting starts from a base of zero and requires each program to justify all expenses, rather than using prior year figures as a starting point.

  2. A park agency's debt service coverage ratio is 1.2. What does this indicate?

    Answer: Revenue exceeds debt service payments by 20%

    A coverage ratio of 1.2 means revenues are 120% of debt service requirements, indicating a 20% cushion above the minimum needed.

  3. Which fund type is used by park agencies to account for revenues restricted for specific purposes such as park dedication fees?

    Answer: Special revenue fund

    Special revenue funds account for revenues that are legally restricted or committed to expenditures for specific purposes other than debt service or capital projects.

  4. An agency is considering outsourcing its golf course operations. The most critical financial analysis to perform is:

    Answer: Make-or-buy cost comparison

    A make-or-buy analysis compares the full cost of providing the service in-house versus contracting it out to determine the most economical option.

  5. Under the Americans with Disabilities Act, capital improvement funds must prioritize:

    Answer: Transition plan barrier removal before other capital improvements

    ADA transition plans require agencies to systematically remove barriers, and this obligation should guide capital funding prioritization.

  6. A parks agency's fund balance policy requires maintaining reserves equal to two months of operating expenditures. This policy primarily addresses:

    Answer: Cash flow and emergency financial risk

    Fund balance reserves provide liquidity to cover operating expenses during revenue gaps or unexpected emergencies.

  7. Which pricing strategy sets fees based on what competitors charge for similar recreation programs?

    Answer: Competitive pricing

    Competitive pricing benchmarks fees against what the market charges for similar services rather than calculating from internal costs.