CTPRP EXAM TEST BANK SOLVED
QUESTIONS WITH FULL SOLUTION
VERIFIED RESPONSES GRADED A+
⩥ Fees and charges are routinely set to (4 reasons).
Answer: 1. Recover costs
2. Create new resources for other programs
3. Establish the value of a program
4. Influence behavior (late fees, replacement costs, promote use of non-
peak time facility rentals)
⩥ To have an effective dialog about budget needs, you must be able to
do three things:.
Answer: 1. Have a thorough understanding of fees and charges
2. Develop a program budget
3. Justify expenditures (most important piece)
⩥ What are the three stages of creating a budget?.
Answer: 1. Preparation
2. Adoption/authorization
3. Execution/implementation
,⩥ What does it mean that the budget process is cyclical?.
Answer: New budgets are being prepared as old ones are being executed
⩥ Revenue.
Answer: money coming into the organization. May vary by season, be
responsive to changes in operation, and subject to shifts in trends
⩥ Revenue comes from 5 different sources:.
Answer: 1. Compulsory income (taxes)
2. Gratuitous income
3. Earned income
4. Contractual receipts
5. Investment income
⩥ What are the 5 types of taxes that agencies receive income from?.
Answer: 1. Real property taxes
2. Personal property taxes
3. Sales tax
4. Income tax
5. Excise taxes
⩥ Real property taxes.
,Answer: Tax assessed on land and anything that is built or growing on it.
Appraised by local assessor, generally 30-50% lower than fair market
value.
⩥ Tax base.
Answer: total assessed value of all properties within the political
jurisdiction
⩥ One dollar equals how many mills?.
Answer: 1 dollar = 1,000 mills and is 1/1000 of the assessed property
value
⩥ Personal property taxes.
Answer: Tax household and business tangible property (cars, furniture)
and intangible property (stocks and bonds)
⩥ Excise taxes.
Answer: Imposed on a specific good or service.
Some are imposed to discourage production and consumption of these
goods. Ex: cigarettes, alcohol
May be used for specific purposes such as to fund convention and
visitors bureaus or to build or refurbish sports stadiums
⩥ Gratuitous income.
, Answer: Income received without expectation of a return including
grants, gifts, donations, planning giving, and sponsorships
⩥ Earned income.
Answer: Income generated by fees and charges. Program fees, admission
fees, user fees, license and permit fees
⩥ Contractual receipts.
Answer: Agencies contract with private agencies to sell merchandise or
provide services for them. Ex: boat rentals, concessions, equipment
shops, instructors.
⩥ Investment income.
Answer: Derived from interest gained from investing agency funds into
investment instruments such as money markets, stocks, and mutual
funds. Some agencies will set up endowments from donations or
bequests and use the interest from the accounts to fund special projects
⩥ What is typically an agency's largest expenditure?.
Answer: Personnel
⩥ Object-classification budgeting system.
Answer: Grouping of expenditures on the basis of goods or services
purchased.
QUESTIONS WITH FULL SOLUTION
VERIFIED RESPONSES GRADED A+
⩥ Fees and charges are routinely set to (4 reasons).
Answer: 1. Recover costs
2. Create new resources for other programs
3. Establish the value of a program
4. Influence behavior (late fees, replacement costs, promote use of non-
peak time facility rentals)
⩥ To have an effective dialog about budget needs, you must be able to
do three things:.
Answer: 1. Have a thorough understanding of fees and charges
2. Develop a program budget
3. Justify expenditures (most important piece)
⩥ What are the three stages of creating a budget?.
Answer: 1. Preparation
2. Adoption/authorization
3. Execution/implementation
,⩥ What does it mean that the budget process is cyclical?.
Answer: New budgets are being prepared as old ones are being executed
⩥ Revenue.
Answer: money coming into the organization. May vary by season, be
responsive to changes in operation, and subject to shifts in trends
⩥ Revenue comes from 5 different sources:.
Answer: 1. Compulsory income (taxes)
2. Gratuitous income
3. Earned income
4. Contractual receipts
5. Investment income
⩥ What are the 5 types of taxes that agencies receive income from?.
Answer: 1. Real property taxes
2. Personal property taxes
3. Sales tax
4. Income tax
5. Excise taxes
⩥ Real property taxes.
,Answer: Tax assessed on land and anything that is built or growing on it.
Appraised by local assessor, generally 30-50% lower than fair market
value.
⩥ Tax base.
Answer: total assessed value of all properties within the political
jurisdiction
⩥ One dollar equals how many mills?.
Answer: 1 dollar = 1,000 mills and is 1/1000 of the assessed property
value
⩥ Personal property taxes.
Answer: Tax household and business tangible property (cars, furniture)
and intangible property (stocks and bonds)
⩥ Excise taxes.
Answer: Imposed on a specific good or service.
Some are imposed to discourage production and consumption of these
goods. Ex: cigarettes, alcohol
May be used for specific purposes such as to fund convention and
visitors bureaus or to build or refurbish sports stadiums
⩥ Gratuitous income.
, Answer: Income received without expectation of a return including
grants, gifts, donations, planning giving, and sponsorships
⩥ Earned income.
Answer: Income generated by fees and charges. Program fees, admission
fees, user fees, license and permit fees
⩥ Contractual receipts.
Answer: Agencies contract with private agencies to sell merchandise or
provide services for them. Ex: boat rentals, concessions, equipment
shops, instructors.
⩥ Investment income.
Answer: Derived from interest gained from investing agency funds into
investment instruments such as money markets, stocks, and mutual
funds. Some agencies will set up endowments from donations or
bequests and use the interest from the accounts to fund special projects
⩥ What is typically an agency's largest expenditure?.
Answer: Personnel
⩥ Object-classification budgeting system.
Answer: Grouping of expenditures on the basis of goods or services
purchased.
