Budgeting and Financial Management Flashcards
6 cards from real CAA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Budgeting and Financial Management flashcards as text
What is the primary purpose of zero-based budgeting in athletic programs?
Answer: To justify all expenses from scratch each year
Zero-based budgeting requires each expense to be justified for each new budget period, ensuring funds are allocated efficiently.
Which financial statement provides an overview of an athletic department's revenues and expenses over a specific period?
Answer: Income statement
An income statement, also known as a profit and loss statement, details revenues and expenses to determine net income or loss.
What is a key benefit of using a line-item budget for managing athletic programs?
Answer: It allows detailed tracking of expenses
A line-item budget categorizes expenditures into specific areas, allowing for better tracking and financial control.
Which revenue source is most commonly used to fund high school athletic programs?
Answer: Ticket sales and sponsorships
Ticket sales, fundraising events, and sponsorships are primary sources of revenue for high school athletic programs.
What financial management strategy helps athletic administrators plan for unexpected expenses?
Answer: Creating a contingency fund
Creating a contingency fund allows athletic programs to cover unexpected costs, ensuring financial stability.
Which of the following is a key consideration when seeking sponsorships for athletic programs?
Answer: Ensuring alignment with school values
Sponsorship agreements should align with the school’s values and provide mutual benefits for both the sponsor and the athletic program.