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AAAE CERTIFIED MEMBER STUDY GUIDE
2025 QUESTIONS AND ANSWERS.
1. A __________ is a ratio used to determining the true short-
term solvency of the business because it removes inventory
from the equation. - correct answer - Quick Ratio
2. __________ is a method that means that revenues and
expenses are recorded at the time a transaction takes place.
Revenue is recorded when earned, and expenses are recorded
when incurred. - correct answer - Accrual Accounting
3. The __________ budgeting technique that assumes that
choices must be made as to which projects are most important
for benefits to be derived. - correct answer - Program Plan
Budget
4. The objective of the __________ is to provide an accurate
estimate of the revenues and expenditures of the airport for a
future time period, normally one year. It can include budgeted
revenues and expenses or just expenses alone, depending on
the type of organization. - correct answer - Operating budget
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5. Appropriations for __________ budgeting is to allocate funds
according to the goals, outcomes, or activities deemed most
important to the airport. The output measures would be the
products, goods, and services the organization procedures. -
correct answer - Performance Based
6. In the __________ method of determining rates and charges,
the financial risk is transferred to the airlines in return for a
negotiated limit on an airport's profits, and the airlines
guarantee an airport's solvency by agreeing to pay all
remaining costs. - correct answer - Residual
7. Incentives and financial reward for good management, permits
discretionary use of surplus monies within limits; and provides
a greater degree of management flexibility are advantages of
the __________ methodology - correct answer - Compensatory
8. Charges for items such as apron parking and ground power
starting unit use are categorized as _________. - correct
answer - Aeronautical Charges
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9. Which of the following is NOT true of an airline use agreement?
- correct answer - It specifies the minimum level of service
airline must provide.
10. Airport lease agreements normally contain a __________ to
protect an airport against potential claims or losses because of
the way the tenant conducts his or her operation. - correct
answer - General indemnity Clause
11. Which of the following statements is true? - correct answer -
Debt service can be included in a rate base.
12. _________ evaluation is the accepted accounting
convention for asset valuing of local government enterprise
functions such as airports. it is the simplest, most direct, and
easiest way to verify the measurement of costs. - correct
answer - Historic Cost
13. Airport policies toward balancing concession revenue with
service typically include all of the following techniques except
___________. - correct answer - Setting product type and
selection
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14. Under the FAA's policy on rates and charges, if revenue is
lost because airports charge nonairport-related entities less
than full market value for leased space or property, the airports
have engaged in __________. - correct answer - Revenue
diversion
15. In developing airport property, the major financial difference
between a ground lease provision and fee-simple ownership is
that __________. - correct answer - No mortgage interest can
be placed on the land under a ground lease
16. The department of Transportation's primary dispute
resolution position is that issues of rates and charges are best
resolved __________. - correct answer - At the local level by
agreement between users and airports
17. Which of the following would NOT be a factor in setting
terminal rates? - correct answer - Aircraft landed weight
18. The AAAE Certified Member Modules are materials airport
managers can use as...
- Airport regulation
AAAE CERTIFIED MEMBER STUDY GUIDE
2025 QUESTIONS AND ANSWERS.
1. A __________ is a ratio used to determining the true short-
term solvency of the business because it removes inventory
from the equation. - correct answer - Quick Ratio
2. __________ is a method that means that revenues and
expenses are recorded at the time a transaction takes place.
Revenue is recorded when earned, and expenses are recorded
when incurred. - correct answer - Accrual Accounting
3. The __________ budgeting technique that assumes that
choices must be made as to which projects are most important
for benefits to be derived. - correct answer - Program Plan
Budget
4. The objective of the __________ is to provide an accurate
estimate of the revenues and expenditures of the airport for a
future time period, normally one year. It can include budgeted
revenues and expenses or just expenses alone, depending on
the type of organization. - correct answer - Operating budget
, Page | 2
5. Appropriations for __________ budgeting is to allocate funds
according to the goals, outcomes, or activities deemed most
important to the airport. The output measures would be the
products, goods, and services the organization procedures. -
correct answer - Performance Based
6. In the __________ method of determining rates and charges,
the financial risk is transferred to the airlines in return for a
negotiated limit on an airport's profits, and the airlines
guarantee an airport's solvency by agreeing to pay all
remaining costs. - correct answer - Residual
7. Incentives and financial reward for good management, permits
discretionary use of surplus monies within limits; and provides
a greater degree of management flexibility are advantages of
the __________ methodology - correct answer - Compensatory
8. Charges for items such as apron parking and ground power
starting unit use are categorized as _________. - correct
answer - Aeronautical Charges
, Page | 3
9. Which of the following is NOT true of an airline use agreement?
- correct answer - It specifies the minimum level of service
airline must provide.
10. Airport lease agreements normally contain a __________ to
protect an airport against potential claims or losses because of
the way the tenant conducts his or her operation. - correct
answer - General indemnity Clause
11. Which of the following statements is true? - correct answer -
Debt service can be included in a rate base.
12. _________ evaluation is the accepted accounting
convention for asset valuing of local government enterprise
functions such as airports. it is the simplest, most direct, and
easiest way to verify the measurement of costs. - correct
answer - Historic Cost
13. Airport policies toward balancing concession revenue with
service typically include all of the following techniques except
___________. - correct answer - Setting product type and
selection
, Page | 4
14. Under the FAA's policy on rates and charges, if revenue is
lost because airports charge nonairport-related entities less
than full market value for leased space or property, the airports
have engaged in __________. - correct answer - Revenue
diversion
15. In developing airport property, the major financial difference
between a ground lease provision and fee-simple ownership is
that __________. - correct answer - No mortgage interest can
be placed on the land under a ground lease
16. The department of Transportation's primary dispute
resolution position is that issues of rates and charges are best
resolved __________. - correct answer - At the local level by
agreement between users and airports
17. Which of the following would NOT be a factor in setting
terminal rates? - correct answer - Aircraft landed weight
18. The AAAE Certified Member Modules are materials airport
managers can use as...
- Airport regulation
