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

The income statement (profit and loss statement) reports revenues and expenses over a defined period to show net income or loss.

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

Break-even revenue = Fixed costs + (Variable cost × attendees) = $80,000 + ($15 × 2,000) = $110,000.

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

A rolling forecast updates financial projections on a regular cycle, incorporating recent actuals to improve planning accuracy.

Question 4

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

Accepted Answer

Variable cost

Answer

Per-event security wages vary directly with the number of events held, making them a variable 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

Deposits for future services are deferred revenue — a liability — until the event is actually held and the obligation is fulfilled.

(CVE) Certified Venue Executive Practice Test

(CVE) Certified Venue Executive Practice Test

CVE Venue Financial Management 2