Question 1

The financial philosophy for your event may be:&#10;A) Profit oriented&#10;B) Break-even&#10;C) Loss leader or hosted&#10;D) All of the above

Accepted Answer

The financial philosophy for an event can vary depending on the goals, and it may be profit-oriented, break-even, or a loss leader/hosted, making all options possible.

Question 2

When conducting research for your event, review the:&#10;A) General economy&#10;B) Local rumors&#10;C) Reasonable projected income&#10;D) A & C

Accepted Answer

Reviewing the general economy and reasonable projected income helps in understanding the financial environment and potential budget constraints for the event.

Question 3

Typical income categories for your event may be:&#10;A) Payments to sub contractors&#10;B) Sponsorship&#10;C) Registration fees&#10;D) B & C

Accepted Answer

Sponsorship and registration fees are typical income categories for events, as they generate revenue. Payments to subcontractors are expenses, not income.

Question 4

All of the following are typical expenses for your event, except:&#10;A) Merchandise sales income&#10;B) Advertising&#10;C) Audiovisual equipment and services&#10;D) Entertainment

Accepted Answer

Merchandise sales income is not a typical expense for an event. It is a source of revenue.

Question 5

Make certain that your accounting software is compatible with your:&#10;A) Lawyer&#10;B) Banker&#10;C) Accountant&#10;D) Caterer

Accepted Answer

Your accountant needs to work with your financial data, so compatibility with your accounting software is crucial for accurate financial management and reporting.

Question 6

Fixed overhead expenses for your event include the following items, except:&#10;A) Rent&#10;B) Telephone&#10;C) Catering for meal functions&#10;D) Insurance

Accepted Answer

Catering for meal functions is typically considered a variable expense, as it can change based on the number of attendees or the specific requirements of the event. Fixed overhead expenses, on the other hand, are costs that do not fluctuate with the level of activity or attendance.

Question 7

Variable expenses include:&#10;A) Catering&#10;B) Audio visual&#10;C) Registration materials&#10;D) All of the above

Accepted Answer

Variable expenses are costs that can change based on the level of activity or usage, and all the options listed (catering, audio visual, and registration materials) can vary depending on the event size or requirements.

Question 8

The difference between net and gross profit for your event is the:&#10;A) Type of software you use&#10;B) Percentage of fixed overhead expenses that was dedicated to producing a specific event&#10;C) The staff salaries&#10;D) The benefits

Accepted Answer

Net profit is calculated by subtracting all expenses, including fixed overhead expenses, from gross profit.

Question 9

The foreign exchange rate is the:&#10;A) Price of one currency expressed in another currency&#10;B) The Euro&#10;C) The amount set by the Federal Reserve&#10;D) None of the above

Accepted Answer

The foreign exchange rate is the price of one currency expressed in terms of another currency.

Question 10

The account codes for your event depict:&#10;A) Categories&#10;B) Line item income and expenditures&#10;C) Generalizations&#10;D) A & B

Accepted Answer

Account codes for an event are used to categorize and detail line item income and expenditures, making both A and B correct.

Question 11

When budgeting expenses, it is important to:&#10;A) Over project so you may trim later&#10;B) Under project so you may find money later&#10;C) Neither A or B&#10;D) Both A and B

Accepted Answer

The answer of When budgeting expenses, it is important to:&#10;A)...

Question 12

The budget for your event is based upon:&#10;A) Historical data&#10;B) Comparable data&#10;C) Wild guesses&#10;D) A & B

Accepted Answer

The answer of The budget for your event is based...

Question 13

When budgeting the income for your event, you should:&#10;A) Over project potential revenue&#10;B) Under project revenue because there are many exogenous variables&#10;C) Get advice from your volunteers&#10;D) Use your gut feelings

Accepted Answer

The answer of When budgeting the income for your event,...

Question 14

It is important to identify all:&#10;A) Expenses&#10;B) Sources of income&#10;C) Problems&#10;D) A & B

Accepted Answer

The answer of It is important to identify all:&#10;A) Expenses&#10;B)...

Question 15

Expenses may be:&#10;A) Fixed&#10;B) Variable&#10;C) Permanent&#10;D) A & B

Accepted Answer

The answer of Expenses may be:&#10;A) Fixed&#10;B) Variable&#10;C) Permanent&#10;D) A...

Question 16

A fixed expense would be:&#10;A) Insurance&#10;B) Delegate meals&#10;C) Registration materials&#10;D) Coach hire

Accepted Answer

The answer of A fixed expense would be:&#10;A) Insurance&#10;B) Delegate...

Question 17

The variance in your budget is the difference between:&#10;A) Men and women&#10;B) Children and adults&#10;C) Projected and actual&#10;D) None of the above

Accepted Answer

The answer of The variance in your budget is the...

Question 18

Many event organizations fail due to:&#10;A) Lack of creativity&#10;B) Lack of volunteers&#10;C) Limited selection of floral center pieces&#10;D) Poor financial planning and administration

Accepted Answer

The answer of Many event organizations fail due to:&#10;A) Lack...

Question 19

Your accountant should have:&#10;A) Familiarity with event budgets&#10;B) Familiarity with local accounting laws and practices&#10;C) A degree in planned events&#10;D) A & B

Accepted Answer

The answer of Your accountant should have:&#10;A) Familiarity with event...

Question 20

You should try to identify more:&#10;A) Expense streams&#10;B) Income streams&#10;C) Postage stamps&#10;D) Coffee cups

Accepted Answer

The answer of You should try to identify more:&#10;A) Expense...

Deck 5: Financial Administration