Basics
The following definition: “A statement of estimated revenues and expenditures for a specified period of time; divided into subject categories and arranged by principal areas of revenue and expense” describes what type of financial activity?
A budget
Registration fees, Sponsorship, and Vendor fees are just a few examples of major sources of what?
Revenue
W2.C3; PCMA Professional Meeting Management, p. 82-85; Slide 18 & 19
A complete set of financial statements include how many reports.
Four
There are four main financial statements. They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders' equity.
(True or False). One of the purposes of pricing is to recover costs of production.
True
Page 151 of the FRM Textbook, Slide 4
What is the Net Income Formula?
Net income = Total Revenues - Total Expenses
A budget philosophy explains that a budget must be accurate and should align with the organization’s financial ______ for the meeting.
Goals
Which is the most common of all budget formats, in general?
Object Classification and Line Item Budgets
FRM Textbook Page 78-79, Slide 8
A “Statement of financial position” or “Statement of net worth” reveals what about a firm?
It reveals the firm's assets, liabilities, and owners' equity (net worth).
*Know the components of the fundamental accounting equation (e.g., the Balance Sheet)
EMG2400 W2.C4 - The Accounting Process, Slide 6/7
During which phase of fund development does the nurturing of major and high value donors take place?
Commitment stage
Textbook page 198-199, Slide 7
What is the basic or fundamental accounting equation formula?
Assets = Liabilities + Stockholders' Equity
W2.C5 - The Accounting Process, Slide 6
Revenue is represented by what is needed for an event, in order to offset what?
The expenses
Performance budgets are often called a measurement of __________.
Efficiency
FRM Textbook Page 86
When discussing stock and flow, financial resources available at a given time refers to what?
Stock
A market-driven approach to sponsorship is considered what kind of behavior?
Business-related behavior
Textbook page 220, Slide 7
How is total economic impact calculated?
= Direct Spending + Indirect Spending X Induced Spending
W15.C38 - Economic Impact, Slide 34
There are three specific financial goals for events, name these goals.
Profit, Break-event, Deficit
****Know what each is, be able to describe what it means, etc.
When we speak of budgeting formats, we are talking about the way in which budgeting information is what??
Structured
Morgan, 2002, p. 71
Which net cash flow is being referred to when the balance does not leave enough for bills to be paid?
Negative cumulative net cash flow
Page 126 – 127 of the FRM Textbook, Slide 6
Which purpose of pricing/pricing strategy does the following statement describe: "When price is used as an indicator of the relative quality or value of the event"?
Pricing to establish value
*Know the other five purposes of pricing
Page 152 of the FRM Textbook, Slide 7
How would you calculate RevPar? Please provide the equation.
RevPAR = Average Daily Rate x Occupancy Rate
W5.C12, Slide 31 & W7.C19, Slide 12
Budget elements for meeting professionals include what types of costs?
Fixed costs (FC) and Variable costs (VC)
*Know the total cost calculation for total expenses: FC + VC = TC (total cost)
PCMA Professional Meeting Management (Week 1 Supplemental Reading), p. 84-85
What are the two primary ways to create meeting budgets?
Incremental budgeting and Zero-based budgeting (using an object classification/line item format)
****
EMG2400 W2.C3 - Chapter 3 - Budgeting Basics, Slides 15 & 16
Compulsory, gratuitous, earned, investment, and contractual receipts are all common examples of what?
Sources of income
Page 135 – 137 of the FRM Textbook, Slide 6
When calculating the actual cost, to determine ticket/registration costs, the equation reads as follows: “P = (F + V)/N” …In this equation the N stands for what?
N = Number of units expected to be sold
What is the equation for measuring/calculating event ROI?
[(Total Sales Revenue – Total Cost of the Event) ÷ Total Cost of Event] X 100 = ROI