AAAE ACE Airport Finance Mod 2 2025 update|comprehensive
AAAE ACE Airport Finance Mod 2
questions and verified answers (complete solutions) Exam|GRADE
Study online at https://quizlet.com/_hduagn
A+!!
1. Cash Basis Accounting records revenues when cash is received and expenses when cash is paid
2. Accrual Basis Account- reporting income when it is earned and expenses when they are in-
ing curred, does not matter when cash is exchanged
3. Modified Accrual Ac- recognized 1) revenues when the resulting current financial resources
counting are both measurable and available to be used and 2) expenditures when
they are incurred
4. GAAP Principles Recognition, measurement, presentation, disclosure
5. Operating Budget budget for day-to-day expenses covering the span of a year
6. Capital Budget budget for major capital, or investment, expenditures covering up to
5-10 years, also subject to depreciation on accounting records
7. Budget Cycle Planning, preparation, approval, execution (or expenditure), analysis,
audit
8. Incremental Budget Increases the previous year's budget by a percentage
9. Zero-Based Budget allocates resources as if each budget was brand new not taking into
account last year's budget
10. Management by Objec- Setting goals and then creating a budget to meet those goals
tives (MBO)
11. Activity-Based Budget- Budgeting approach that focuses on the budgeted cost of the activities
ing (ABB) necessary to accomplish functions.
1. Identify activities and their cost drivers
2. Forecast number of units of cost driver for required activity level
3. Calculate the cost driver (cost per unit of activity)
12. Balance Sheet
1/3
AAAE ACE Airport Finance Mod 2
questions and verified answers (complete solutions) Exam|GRADE
Study online at https://quizlet.com/_hduagn
A+!!
1. Cash Basis Accounting records revenues when cash is received and expenses when cash is paid
2. Accrual Basis Account- reporting income when it is earned and expenses when they are in-
ing curred, does not matter when cash is exchanged
3. Modified Accrual Ac- recognized 1) revenues when the resulting current financial resources
counting are both measurable and available to be used and 2) expenditures when
they are incurred
4. GAAP Principles Recognition, measurement, presentation, disclosure
5. Operating Budget budget for day-to-day expenses covering the span of a year
6. Capital Budget budget for major capital, or investment, expenditures covering up to
5-10 years, also subject to depreciation on accounting records
7. Budget Cycle Planning, preparation, approval, execution (or expenditure), analysis,
audit
8. Incremental Budget Increases the previous year's budget by a percentage
9. Zero-Based Budget allocates resources as if each budget was brand new not taking into
account last year's budget
10. Management by Objec- Setting goals and then creating a budget to meet those goals
tives (MBO)
11. Activity-Based Budget- Budgeting approach that focuses on the budgeted cost of the activities
ing (ABB) necessary to accomplish functions.
1. Identify activities and their cost drivers
2. Forecast number of units of cost driver for required activity level
3. Calculate the cost driver (cost per unit of activity)
12. Balance Sheet
1/3
