CPRP Administration and Finance 4

Question 1

Which type of fund is most commonly used by park and recreation agencies to account for general operating activities?

Accepted Answer

General fund

Answer

The general fund accounts for most of a government agency's core operating revenues and expenditures not assigned to other funds.

Question 2

A parks department wants to evaluate whether a new aquatic center should be funded as an enterprise fund. What is the key characteristic of an enterprise fund?

Accepted Answer

It is intended to be self-supporting through user fees

Answer

Enterprise funds are used for government activities that operate like businesses, recovering costs primarily through user charges.

Question 3

Which document formally authorizes a parks agency to collect revenues and make expenditures for a fiscal year?

Accepted Answer

Appropriations ordinance or budget resolution

Answer

An appropriations ordinance or budget resolution is the legal authorization that allows a government agency to spend money and collect revenues.

Question 4

What is the purpose of a cost-benefit analysis when evaluating a new park facility?

Accepted Answer

To compare total expected benefits against total expected costs over the project's life

Answer

Cost-benefit analysis weighs all anticipated costs against quantified benefits to determine whether a project provides sufficient return on investment.

Question 5

A recreation supervisor is preparing a program budget. Which budget format organizes spending around specific programs rather than line items?

Accepted Answer

Program budget

Answer

A program budget groups expenditures by specific programs or services, allowing managers to evaluate the full cost of delivering each program.

CPRP - Certified Park and Recreation Professional Practice Test

CPRP - Certified Park and Recreation Professional Practice Test

CPRP Administration and Finance 4