AAAE ACE Airport Finance Mod 2 2025
update|comprehensive questions and verified
answers (complete solutions) Exam|GRADE A+!!
Cash Basis Accounting - (ANSWER)records revenues when cash is received and
expenses when cash is paid
Accrual Basis Accounting - (ANSWER)reporting income when it is earned and
expenses when they are incurred, does not matter when cash is exchanged
Modified Accrual Accounting - (ANSWER)recognized 1) revenues when the
resulting current financial resources are both measurable and available to be used
and 2) expenditures when they are incurred
GAAP Principles - (ANSWER)Recognition, measurement, presentation, disclosure
Operating Budget - (ANSWER)budget for day-to-day expenses covering the span
of a year
Capital Budget - (ANSWER)budget for major capital, or investment, expenditures
covering up to 5-10 years, also subject to depreciation on accounting records
Budget Cycle - (ANSWER)Planning, preparation, approval, execution (or
expenditure), analysis, audit
, Incremental Budget - (ANSWER)Increases the previous year's budget by a
percentage
Zero-Based Budget - (ANSWER)allocates resources as if each budget was brand
new not taking into account last year's budget
Management by Objectives (MBO) - (ANSWER)Setting goals and then creating a
budget to meet those goals
Activity-Based Budgeting (ABB) - (ANSWER)Budgeting approach that focuses on
the budgeted cost of the activities 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)
Statement of Net Position/Assets - (ANSWER)Balance Sheet
Statement of Revenues, Expenses, and Changes in Net Position/Assets -
(ANSWER)Income Statement
Statement of Cash Flows - (ANSWER)Statement of Cash Flows
Audit - unqualified opinion - (ANSWER)Financial statements are presented fairly
in accordance with GAAP
update|comprehensive questions and verified
answers (complete solutions) Exam|GRADE A+!!
Cash Basis Accounting - (ANSWER)records revenues when cash is received and
expenses when cash is paid
Accrual Basis Accounting - (ANSWER)reporting income when it is earned and
expenses when they are incurred, does not matter when cash is exchanged
Modified Accrual Accounting - (ANSWER)recognized 1) revenues when the
resulting current financial resources are both measurable and available to be used
and 2) expenditures when they are incurred
GAAP Principles - (ANSWER)Recognition, measurement, presentation, disclosure
Operating Budget - (ANSWER)budget for day-to-day expenses covering the span
of a year
Capital Budget - (ANSWER)budget for major capital, or investment, expenditures
covering up to 5-10 years, also subject to depreciation on accounting records
Budget Cycle - (ANSWER)Planning, preparation, approval, execution (or
expenditure), analysis, audit
, Incremental Budget - (ANSWER)Increases the previous year's budget by a
percentage
Zero-Based Budget - (ANSWER)allocates resources as if each budget was brand
new not taking into account last year's budget
Management by Objectives (MBO) - (ANSWER)Setting goals and then creating a
budget to meet those goals
Activity-Based Budgeting (ABB) - (ANSWER)Budgeting approach that focuses on
the budgeted cost of the activities 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)
Statement of Net Position/Assets - (ANSWER)Balance Sheet
Statement of Revenues, Expenses, and Changes in Net Position/Assets -
(ANSWER)Income Statement
Statement of Cash Flows - (ANSWER)Statement of Cash Flows
Audit - unqualified opinion - (ANSWER)Financial statements are presented fairly
in accordance with GAAP
