AAAE ACE Airport Finance Mod 2 |Questions and answers with 100% correct solutions | Graded A+

Cash Basis Accounting ✔✔records revenues when cash is received and expenses when cash is paid
Accrual Basis Accounting ✔✔reporting income when it is earned and expenses when they are incurred,
does not matter when cash is exchanged
Modified Accrual Accounting ✔✔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 ✔✔Recognition, measurement, presentation, disclosure
Operating Budget ✔✔budget for day-to-day expenses covering the span of a year
Capital Budget ✔✔budget for major capital, or investment, expenditures covering up to 5-10 years, also
subject to depreciation on accounting records
Budget Cycle ✔✔Planning, preparation, approval, execution (or expenditure), analysis, audit
Incremental Budget ✔✔Increases the previous year's budget by a percentage
Zero-Based Budget ✔✔allocates resources as if each budget was brand new not taking into account last
year's budget