CVE Venue Financial Management 2

Question 1

Which financial statement shows a venue's revenues and expenses over a specific accounting period?

Accepted Answer

Income statement

Answer

Balance sheet

Answer

Cash flow statement

Answer

Statement of retained earnings

Question 2

A venue's fixed costs total $80,000/month and variable costs are $15 per attendee. If 2,000 attendees are expected, what is the break-even revenue needed?

Accepted Answer

$110,000

Answer

$80,000

Answer

$95,000

Answer

$30,000

Question 3

What is the primary purpose of a rolling forecast in venue financial planning?

Accepted Answer

To continuously update projections based on actual performance

Answer

To replace the annual budget entirely

Answer

To track daily cash deposits

Answer

To audit payroll expenses

Question 4

Which cost classification best describes the wages paid to event-day security staff hired per event?

Accepted Answer

Variable cost

Answer

Fixed cost

Answer

Sunk cost

Answer

Overhead cost

Question 5

A venue collects $500,000 in event deposits for future bookings. On the balance sheet, these deposits are recorded as:

Accepted Answer

Deferred revenue (liability)

Answer

Revenue

Answer

Accounts receivable

Answer

Owner's equity

Question 6

What does the term 'contribution margin' represent in venue financial analysis?

Accepted Answer

Revenue minus variable costs per unit

Answer

Total revenue minus all fixed costs

Answer

Net profit after taxes

Answer

Total operating expenses

Question 7

Which method of depreciation results in higher depreciation expense in the early years of an asset's life?

Accepted Answer

Accelerated (double-declining balance) depreciation

Answer

Straight-line depreciation

Answer

Units-of-production depreciation

Answer

Sum-of-years-digits only applies to tax law