CPRP Administration and Finance 3

Question 1

Which financial statement shows a park and recreation agency's revenues and expenditures over a specific period?

Accepted Answer

Statement of revenues and expenditures

Answer

The statement of revenues and expenditures (or statement of activities) summarizes financial activity over an accounting period.

Question 2

A park district is considering issuing general obligation bonds. Which factor most directly affects the interest rate the agency will pay?

Accepted Answer

The agency's credit rating

Answer

Credit ratings assigned by agencies like Moody's or S&P directly influence bond interest rates by signaling the issuer's creditworthiness.

Question 3

What is the primary purpose of an indirect cost allocation plan in a parks agency?

Accepted Answer

To distribute overhead costs across programs and departments

Answer

Indirect cost allocation plans systematically distribute shared overhead costs (administration, utilities) to programs for accurate cost accounting.

Question 4

A recreation manager discovers mid-year that a program is significantly over budget. Which action should be taken FIRST?

Accepted Answer

Identify the cause of the variance before making decisions

Answer

Identifying the root cause of a budget variance is the essential first step before any corrective action can be properly targeted.

Question 5

Which procurement method is typically required when a parks agency purchases goods or services above a specified dollar threshold?

Accepted Answer

Competitive sealed bidding

Answer

Most government agencies require competitive sealed bidding (formal competitive bidding) for purchases above a set threshold to ensure transparency and value.

CPRP - Certified Park and Recreation Professional Practice Test

CPRP - Certified Park and Recreation Professional Practice Test

CPRP Administration and Finance 3