Financial Management and Budgeting Flashcards
6 cards from real CPRP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Financial Management and Budgeting flashcards as text
What financial document provides an overview of an organization's assets, liabilities, and equity?
Answer: Balance sheet
A balance sheet (statement of net position) shows the financial position of an organization at a specific point in time.
Which depreciation method allocates equal expense amounts over an asset's useful life?
Answer: Straight-line depreciation
Straight-line depreciation divides the cost of an asset equally over its estimated useful life.
What is the purpose of a reserve fund in parks and recreation management?
Answer: To set aside money for future maintenance and replacement costs
Reserve funds accumulate money to cover future major maintenance, repair, or replacement of facilities and equipment.
Which document authorizes spending authority for a government agency?
Answer: Appropriation
An appropriation is the legal authority granted by a legislative body that allows an agency to spend money for specified purposes.
What financial ratio measures how quickly an organization can pay its short-term obligations?
Answer: Current ratio
The current ratio (current assets divided by current liabilities) measures an organization's ability to meet short-term financial obligations.
Which procurement method requires competitive bidding for purchases above a specified threshold?
Answer: Formal bid process
A formal bid process (sealed bids or RFPs) is required for purchases above a set dollar threshold to ensure competitive pricing and transparency.