EEC 1002 Modules 3 & 4 Chapter 5-8
UPDATED ACTUAL Questions and
CORRECT Answers
Centers are only responsible for providing required financial documentation if they are being
audited. - CORRECT ANSWER - False
An appropriate first step in preparing a budget is to determine anticipated expenses for the
coming year based on the center's goals. - CORRECT ANSWER - True
As soon as any financial transaction occurs, it should be recorded, preferably using a computer
and an appropriate software package. - CORRECT ANSWER - True
Center directors must meet the Fair Labor Standards Act. - CORRECT ANSWER - True
Directors who hire highly educated staff do not have to budget for staff training. - CORRECT
ANSWER - False
One job of a fiscal officer is to withhold from each person's pay the appropriate amount of
money for various taxes and Social Security. - CORRECT ANSWER - True
An employer must provide each employee with an explanation of each deduction with each
paycheck. - CORRECT ANSWER - True
The cost per child is determined by figuring the total cost of running the center and dividing by
the number of children. - CORRECT ANSWER - True
In a cash flow report, 12 months of anticipated income and expenses are listed, followed by
actual income and expenses reported at the end of each month. - CORRECT ANSWER -
True
, Long-range fiscal planning should not be done in child care programs because it is impossible to
predict what will happen in the future. - CORRECT ANSWER - False
The SBA (Small Business Administration) provides start-up income for new centers. -
CORRECT ANSWER - False
A staff member who records more hours than actually worked is guilty of fraud and could be
prosecuted. - CORRECT ANSWER - True
Costs for infants and toddlers are less than costs for preschoolers because they don't need as
many toys. - CORRECT ANSWER - False
Operating funds include start-up expenses and the funds necessary to run the center. - CORRECT
ANSWER - False
Tuition is the major source of income for many centers. - CORRECT ANSWER - True
Documenting training of staff is an effective way to reduce the likelihood of being sued. -
CORRECT ANSWER - True
One realistic way to assist families who enroll two children at a center is to offer ____. -
CORRECT ANSWER - a second child discount
In designing a child care facility, the first task is to analyze the space needs. - CORRECT
ANSWER - True
Panic hardware should be provided on all exit doors. - CORRECT ANSWER - True
UPDATED ACTUAL Questions and
CORRECT Answers
Centers are only responsible for providing required financial documentation if they are being
audited. - CORRECT ANSWER - False
An appropriate first step in preparing a budget is to determine anticipated expenses for the
coming year based on the center's goals. - CORRECT ANSWER - True
As soon as any financial transaction occurs, it should be recorded, preferably using a computer
and an appropriate software package. - CORRECT ANSWER - True
Center directors must meet the Fair Labor Standards Act. - CORRECT ANSWER - True
Directors who hire highly educated staff do not have to budget for staff training. - CORRECT
ANSWER - False
One job of a fiscal officer is to withhold from each person's pay the appropriate amount of
money for various taxes and Social Security. - CORRECT ANSWER - True
An employer must provide each employee with an explanation of each deduction with each
paycheck. - CORRECT ANSWER - True
The cost per child is determined by figuring the total cost of running the center and dividing by
the number of children. - CORRECT ANSWER - True
In a cash flow report, 12 months of anticipated income and expenses are listed, followed by
actual income and expenses reported at the end of each month. - CORRECT ANSWER -
True
, Long-range fiscal planning should not be done in child care programs because it is impossible to
predict what will happen in the future. - CORRECT ANSWER - False
The SBA (Small Business Administration) provides start-up income for new centers. -
CORRECT ANSWER - False
A staff member who records more hours than actually worked is guilty of fraud and could be
prosecuted. - CORRECT ANSWER - True
Costs for infants and toddlers are less than costs for preschoolers because they don't need as
many toys. - CORRECT ANSWER - False
Operating funds include start-up expenses and the funds necessary to run the center. - CORRECT
ANSWER - False
Tuition is the major source of income for many centers. - CORRECT ANSWER - True
Documenting training of staff is an effective way to reduce the likelihood of being sued. -
CORRECT ANSWER - True
One realistic way to assist families who enroll two children at a center is to offer ____. -
CORRECT ANSWER - a second child discount
In designing a child care facility, the first task is to analyze the space needs. - CORRECT
ANSWER - True
Panic hardware should be provided on all exit doors. - CORRECT ANSWER - True
