Fiannce & Administration (2013) Flashcards
1
Q
Describe the Kelly Act of 1925
A
- Contractors could carry mail (not just Army); 2. Start of commercial aviation in U.S.
2
Q
Describe the Air Commerce Act of 1926
A
- Cornerstone of commercial aviation in U.S.; 2. Promote development of commercial aviation; 3. Aviation under Secretary of Commerce (who established rules and licensing) 4. Establishes airways and maintains naviagation aids
3
Q
Describe the Civil Aeronautics Act of 1938
A
- Transferred aviation from Dept. of Commerce to new CAA (Civil Aeronautics Authority) and placed all regulations with CAA. 2. Begins economic regulation 3. Creates administrator position 4. Creates Air Safety Board (NTSB predecessor)
4
Q
Desribe The Reorganization Act of 1940
A
- Splits CAA into CAA & CAB (Civil Aeronautics Board) 2. CAA continues regulation enforcement; airman/aircraft certification, development of airway system 3. CAB responsible for economic regulation, safety rulemaking, and accident investigation
5
Q
Describe the Federal Airport Act of 1946
A
- CAA charged with managing aid program for the improvement and construction of airports (predecessor to AIP) 2. Helps local govts build airport infrasturcture; Federal Aid to Airports Program (FAAP) offers 50/50 cost sharee grants for improvements to essential airports part of National Airport Plan/NAP (predecessor to NPIAS)
6
Q
Describe the Federal Aviation Act of 1958
A
- Legislation spurred by the introduction of jet aircraft and a series of midair collisions 2. CAB becomes an independent office 3. Safety rulemaking transferred from CAB to new Federal Aviation Agency (formerly CAA) 4. FAA organized into 9 regional offices
7
Q
Describe the Dept. of Transportation Act of 1966
A
- DOT created 2. Federal Aviation Agency becomes Federal Aviation Administration 3. FAA becomes reponsible for aviation security 4. Air Safety Board becomes NTSB
8
Q
Describe the Airport and Airways Development Act of 1970
A
- Establishes Airport Development Aid Program (ADAP) for airport development projects and equipment 2. Establishes Planning Grant Program 3. Establishes Part 139
- Required National Airport System Plan (formerly NAP)
9
Q
Desribe the Aviation and Airway Revenue Act of 1970
A
- Establishes aviation trust fund 2. Revenues from airline fares (fee), air freight, and GA fuel
10
Q
Describe the Airline Deregulation of 1978
A
Phases out CAB’s economic regulation of airlines (over a period of about 5 yrs)4
11
Q
What was the PATCO Strike 1981?
A
PATCO: Professional Air Traffic Controller Organization / Pres. Reagan fires nearly 13,000 controllers
12
Q
Describe the Airport and Airways Improvement Act of 1982
A
- Establishes AIP (ending ADAP) 2. Establishes the National Airpspace System Plan (which eventually becomes NPIAS) 3. Establishes aprt 150 noise studies (rule-making follows in 1985)
13
Q
Describe the Aviation Noise and Capacity Act of 1990
A
- Creates PFCs ($3.00 max) 2. Airports charging PFCs have AIP eligibility reduced by 50% 3. New noise standards (ANCA establishes Title 14 CFR Part 161) 4. Airports must comply with ANCA to receive PFC funding through Airport Safety & Capacity Expansion Act.
14
Q
Describe the Military Airport Program of 1991
A
Set-aside discretionary AIP funds for current and former military airports
15
Q
Describe the Aviation Ivestment and Reform Act for the 21st Century, 2000 (aka AIR-21)
A
- Increases PFC cap to $4.50 2. Large & medium hub airports accepting max PFCs must reduce AIP eligibility by 75%
16
Q
Describe the Aviation and Transportation Security Act of 2001
A
- Creates TSA and authorizes $2.50 pax surcharge per segment/max $10 to fund 2. FAA’s security responsibilities moved to TSA (pax and baggage screening) 3. Reinvigorates Air Marshal Program 4. Creates FSD position (Federal Security Director)
17
Q
Describe the Homeland Security Act of 2002
A
- Creates Dept. of Homeland Security 2. TSA moved from DOT to DHS
18
Q
Describe the Vision 100 Century of Aviation Reauthorization Act of 2003
A
- Reauthorizes FAA funding 2. Launches NextGen (air traffic control upgrades)
19
Q
Describe the Implementing Recommendations of the 9/11 Commission Act of 2007
A
Requires air cargo screening
20
Q
Describe the FAA Modernization and Reform Act of 2012
A
- AIP reauthorized, clarifies allowable costs, NextGen emphasized 2. Requires master plans to consider pax convenience, airprot groups access, and access to airport facilities
- revised policy authorizingn TTF agreements to allow for residential property at GA airports
21
Q
Airport Executives must understand and balance these two dichotomies:
A
- the airport is a public entity and must be managed as a public entity
- the airport is a business enterprise and must also be managed as a business.
22
Q
The FAA encourages airports to be ______, with all operational expenses covered by airport revenues.
A
self-sufficient (although many small commercial airports and GA airports are partially funded by taxpayers)
23
Q
Grant assurances require that revenue generated on airport property with airport asseets:
A
be used for the operation of the airport
24
Q
The Federal Airport Act of 1946 transferred ownerwship of surplus military airports to local municipalities, sometimes called _____ agreements.
A
AP-4 (precursor to grant assurances)
25
The predominant form of airport ownership:
municipality (33% of all U.S. airports are city owned, 15% are county operated)
26
The power to acquire property for the public good is called:
eminent domain
27
Common reasons airport authorities are created:
1. airport market or service areas have outgrown their political boundaries, but has economic impacts that affect a wider region
2. allows the governing board to concentrate and specialize on airport business matters
3. smaller staff with better coordination within teh airport management team
4. airport authorities can provide on-scene decision making resulting in less policitcal impact to airport business functions
5. auhorities can provide multiple jurisdictions with representation in the airport's operation and development
28
Define port authority
1. legally chartered institution with same staus as a public corporation
2. operates other types of public facilities along with an airport (e.g. harbors, toll roads railways, or other public transportation systems)
29
A ______ is comprised of individuals with airport expertise appointed to represent the city or county. They are also subject to political maneuvering.
commission
30
Advantages of municipal airport ownership:
1. airport administration has access to city/county resources
2. municipal gov't has the power to tax and issue certain bonds
31
Disadvantages of municipal airport ownership:
1. in times of financial constraints, airport may suffer budget or personnel reductions along with other departments
2. airport is competing with other departments for the same attention and leadership consideration
3. policy-makers are often very unfamiliar with the operation of an airport and they often have extensive span of control to manage that extends beyond just the airport
32
Advantages of airport or port authority ownership:
1. focused leadership and specialized attention to a significant community asset
2. management and operation insulated from political impact
3. shared representation or equitable taxation (Authorities don't always have power to tax)
4. efficient operation and economies of scale
33
Disadvantage of airport or port authority ownership:
1. Resources and finances may not be readily available in the quantities or level necessary to support the airport.
2. greater exposure to liability
34
The trend of airport ownership over the last 50 years is moving toward this type of ownership:
airport authority
35
Privitazation refers to:
shifting government functions to private enterprise
36
Private companies produce most of the _____ generated at airports.
revenue (private companies also employ roughly 90% of the employees working at commercial service airports)
37
The privatization or other sale of airport property is discouraged by:
grant assurances
38
Grant Assurances specify what?
1. the use of airport revenue
2. fair and reasonable fees for airport users
3. disposition of airport property
39
How an airport is organized depends on:
1. type of ownership
2. size of airport
3. the extend to which different functions of teh airport are operated by internal or external parties
4. the local political environment
40
List the 4 primary areas of airport management:
1. finance and administration
2. planning and engineering
3. operations and maintenance
4. marketing, PR, and air service development
41
Planning and Engineering frequently work with this FAA office in the administration of federal grants through the AIP:
Airports District Office (ADO)
42
Two key positions at the airport that are generally outside the vertical reporting structure:
legal counsel and financial auditor
43
Criminal law is statutory and is considered a crime against:
society
44
Felony crimes:
imprisonment of more than one year for serious crimes such as murder, rape or burglary
45
Misdemeanor crimes:
<1 year in jail rather than prison or punishinable by fine
46
Infractions:
governed by state laws, not a criminal offense, typically punished by a fine
47
A civil law is considered to involve inuury to:
an individual
48
Civil law is also referred to as:
tort law (requires actual damange and intent to cause damage)
49
For a civil/tort law to be violated, there generally has to be a violation of:
A individual's rights to freedom from bodily injury, property damage, personal reputation, and/or the taking of rights without just cause. Must be both actual damage/injury AND intent to cause such.
50
The failure to use reasonable care is called:
negligence
51
A person is _____ if he/she fails to act as an ordinarily prudent person would act under the same circumstances.
negligent
52
Government immunity commonly extends to employees of federal, state or loval government IF:
the employee is acting within the scope and authority of their position
53
This act waives governmental immunity if the act of a government *employee caused damage*:
Federal Tort Claims Act
54
This act waives immunity over claims arising out of *contracts* with the federal government:
Tucker Act
55
Wen someone has personally participated in an affirmative act of negligence, known about or complied in negligent acts, or failed to perform a precise duty which he/she agreed to perform is called:
active negligence
56
Examples of areas where airport operators can be exposed to active negligence:
1. response to aircraft incidents or accidents
2. snow removal
3. airfield maintenance
4. environmental remediation
57
Property rights allow a person:
the unrestricted enjoyment of their personal and real property, under the legal precept of quiet enjoyment
58
What is Part 77
Objects Affecting Navigable Airspace
59
What is Part 139
Certification and Operations: Land Airports Service Certain Air Carriers
60
What is Part 150
Airport Noise and Compatibility Planning
61
What is Part 151
Federal Aid to Airports
62
What is Part 152
Airport Aid Program
63
What is Part 156
State Block Grant Program
64
What is Part 157
Notice of Construction, Alteration, Activation and Deactivation of Airports
65
What is Part 158
Passenger Facility Charges
66
What is Part 161
Notice and Approval of Airport Noise and Access Restrictions
67
Title 49 CFR Parts 1500-1562
Airport and aircraft operator security regulations (moved from FAA to TSA under Title 49 as a result of the Aviation and Transportation Security Act of 2001
68
What is Part 36
Noise Standards: Aircraft Type and Airworthiness Certification
69
What is Part 71
Designation of Class A-E Airspace Areas; Airways: Routes and Reporting Points
70
What is Part 73
Special Use Airspace
71
What is Part 91
Aircraft Operating Rules (non-commercial)
72
What is Part 93
Special Air Traffic Rules and Airport Traffic Patterns
73
What is Part 97
Standard Instrument Approach Procedures
74
What is Part 121
Operating Requirements: Domestic, Flag and Supplemental Air Carrier Operations
75
What is Part 129
Operating Requirements: Foreign Air Carriers and Foreign Operators of U.S. Registered Aircraft Engaged in Common Carriage
76
What is Part 135
Operating Requirements: Commuter and On Demand Operations
77
What is Title 14 CFR Part 420?
License to Operate a Launch Site
78
When the government desires to add, change or remove a regulation, they commonly issue this:
Notice of Proposed Rulemaking
79
How long is the public commend period for a Notice of Proposed Rulemaking?
30-60 days (30 days for minor changes, 60 days for major changes)
80
After the public comment period for a proposed regulation is closed, the governmental agency will pulish the final regulation in this document:
Federal Register
81
What type of agreement was a predecessor to AIP grants and their Grant Assurances?
AP-4 agreements (which transferred ownership of surplus military airports after WWII to muncipalities with the agreement the muncipality would maintain and operate the airport)
82
What are Grant Assurances?
A contract between the FAA and airport sponsor. Funds are given to the airport in exchange for the promise that the airport will be kept open and properly maintained, operated and managed.
83
How long do Grant Assurances last?
Up to 20 years, or for the useful life of the facilities developed or the equipment acquired. Some types of Grant Assurances stay in place throughout the existence of the airport.
84
Grant assurances balance three competing public interests:
1. the airport operator managing local affairs
2. the requirement of the FAA to ensure federal funds are effectively used for public air transportation
3. the goal of the government to promote social objectives such as DBEs and the rights of those with disabilities.
85
Grant Assurance #5 (Preserving Rights and Powers)
Restricts the airport from taking any action that would not allow them to properly manage the airport. (Such as, selling airport property aquired with federal funding without permission of the FAA.) TTF agreements cause airports to lose control of off-airport activities and hinder self sufficiency.
86
What is a Through-the-Fence operation?
a business opration located off airport property and not under teh control of the airport,but which has access to the runway and taxiway system
87
What is the FAA's position on through-the-fence agreements?
Not prohibited, but strongly discouraged because of safety, security, and economic equity concerns.
88
What act revised the policy by authorizing TTF agreements to allow for residential property at GA airports?
FAA Moderniation and Reform Act of 2012
89
Grant Assurance #19 (Operations and Maintenance)
requires the aiprort to operated at all times in a safe and serviceable condition in accordance with the Minimum Standards
90
These standards set the requirements of a business wanting to operate on an airport and they are imposed to sensure there is an adequate level of safe and efficient service is available to the public.
Minimum Standards (benefits for both the airport and the tenant)
91
MInimum standards imposed on tenants must be:
1. be reasonable and not unjustly discriminatory
2. apply uniformly
3. reasonably protect the investment of the tenant
4. be relevant to the activity
5. ensure opportunities for new tenants
92
Typical areas covered by rules and regulations are:
1. security
2. conduct of individuals using the airport
3. conduct of tenants and vendors using the airport
4. schedule of fees, rates and charges
5. vehicle movement in the AOA and AMA
6. aircraft operations
93
Grant Assurance #20 (Hazard Removal and Mitigation)
requires airport to take necessary actions to protect the airspace around the airport, including visual and instrument approach paths
94
Grant Assurance #21 (Compatible Land Use)
requires airport to make an *attempt* to restrict the use of adjacent land, or land in the immediate vicinity, to activities and purposes compatible with airport operations
95
Grant Assurance #22 (Economic Nondiscrimination)
requires the airport to be available for public use on reasonable terms and without unjust discrimination to all types, kinds and classes of *aeronautical activites* on the airport. Unjust discrimination doesn't mean they can't discriminate (i.e. for reasons of safety), they just can't unjustly discriminate.
96
Aeronautical Acivities:
any activity that involves, makes possible, or is required for the operation of aircraft or that contributes to or is required for the safety of such operations
97
Grant Assurance #23 (Exclusive Rights)
restricts airport operator from granting any tenant the exclusive right to conduct a particular commercial *aeronautical service*
98
Grant Assurance #24 (Fee and Rental Structure)
Requires the airport sponsor to set fees and lease rates and other charges that are directed at making the airport as self-sustaining as possible. **Exceptions allowed to promote growth if in the airport's best interest.**
99
Airport sponsors must impose ______charges for noncommercial uses of airport property.
Fair Market Value (exceptions for aeronautical user charges and nonprofit aviation organizations)
100
Grant Asurance #25 (Airport Revenues)
restricts the use of airport revenue generated by the airport to be spent on capital or operating costs
101
Examples of airport revenue:
1. proceeds from the sale of land, leases or equipment
2. taxes on fuel
3. operating, access, landing and tie-down fees
4. parking, GT accees, and concessions
102
Examples of non-airport revenue:
1. income from businesses built on land leased from the airport
2. income from leasing property not for aeronautical purposes nor acquired with federal funds
3. collection of fines
4. PFCs
103
Revenue diversion includes using airport revenues for any of the following:
1. general economic development
2. marking/promotional activities unrealted to the airport
3. payments in lieu of taxes/assessments that exceed the value of services
4. payments to compensate sponsoring governmntal bodies for lost tax revenues exceeding stated tax rates
5. direct or indirect payments of airport revenue beyond that which is required to pay for services adn facilities provided to the airport
104
Grant Assurance #31 (Disposal of Land)
requires airport operator to dispose of land purchased for noise compatibility or airport development when it's no longer needed, at FMV, and as early as practicable
105
Land acquired with federal funds for noise abatement purposes which is no longer needed may be sold, but revenue from the sale must go to one of these 4 things:
1. reinvest in an approved noise compatibility project
2. reinvest in an approved propject eligible for federal funding
3. transfer to a sponsor of another aiprort to be reinvested for an approved noise compatibility project4
4. pay the FAA a deposit for the Airport and Airway Trust Fund
106
Grant Assurance #39 (Competitive Access)
when an airport cannot accommodate requests for additional gates by air carriers, they have to notify the Secretary of Transportation (prevents airports from having to accommodate requests from airlines without violating GA #22)
107
_______ are directives on specific subjects and programs issued by the FAA.
FAA Orders (FOs) - internal directives for FAA employees, provide guidance to FAA personnel on their programs
108
The FAA's ____________ Handbook provides the policies and procedures to be followed in carrying out FAA functions related to airport compliance.
Airports Compliance Handbook
109
Airport Executives must balance these two philosophies:
1. aiprort as a public entity (goal: break even)
| 2. airport as a business enterprise (make profit)
110
The FAA's goal is for airports to strive to be:
self-sufficient (not must be, but try to be)
111
Regardless of the aiprort's size and complexity, management's primary duty is:
safe and efficient/secure operation
112
Noise abatement, property law, eminent domain, environmental law, personal injury and contract law are all examples of what?
airport legal issues
113
What is Part 1520
aviation security/SSI (sensitive security information)
114
What is Part 1540
aviation security/rules
115
What is Part 1542
aviation security/airports
116
What is Part 1544
aviation security/aircraft ops
117
Rules & Regulations apply to which groups?
Users and Tenants
118
What are Advisory Circulars?
external directives issued by the FAA. may provide guidance or may be required (usually latter)
119
What are DBEs?
small businesses majority owned (51%) by socially or economically disadvantaged individuals, including women
120
Part 26 requires airports awarding more than $250,000 in cotracts using federal funds to implement what?
A DBE program (with no less than 10% of federally funded projects participating in DBE)
121
Commercial Service airports have what number of minimum annual enplanements?
2,500
122
What percentage of national enplanements do large hub airports have?
1% or more (these account for 70% total pax enplanements)
123
What perrcentage of national enplanements do medium hub airports have?
at least 0.25% but less than 1%
124
What percentage of national enplanements do small hub airports have?
at least 0.05% but les than 0.25%
125
Describe non-hub primary vs non-hub primary commercial:
1. nonhub primary: <0.05% national enplanements but at least 10,000 annual enplanements
2. nonhub non-primary commercial: at least 2,500 enplanements but no more than 10,000
126
What are non-primary airports also known as?
Reliever airports
127
Approx how many total airports are in the US?
19,000 (14k private airstrips, 5k public, only 450 commercial service)
128
What is the largest segment of aviation?
General Aviation
129
Primary service airports have what number of minimum annual enplanements?
10,000
130
This type of airport is the most common *primary* airprort:
nonhub
131
How many airports are in the NPIAS, open to the public, and eligible for AIP funding?
3,330
132
This term allows federal agencies to met the requirement to pulish regulations by referring to materials already pubished elsewhere:
incorporation by reference
133
This 2012 FAA document provided additional classifications for GA airports:
General Aviation Airports: A National Asset (identifies benefits of GA airports)
134
What are some benefits of GA airports?
emergency preparedness and response (police, fire, disaster relief), access to remote areas, commercial/industrial activities, executive business travel, airshows, skydiving, flight instruction, research, etc.
135
What are the four new categories of GA airports?
1. national (84--located in metro areas near businesses and support flying throughout nation and world
2. regional (interstate/intrastate)
3. local (backbone of GA system)
4. basic
136
Two functions of the NTSB:
1. investigatge probably cause
| 2. make safety recommendations
137
What does the FSDO office do?
Flight Standards District Office - pilot and aircraft certifications
138
What does the ADO do?
Airport District Office - compliance with Part 139 and GA's, manage discretionary funds, Part 13 complaints
139
What is a Part 13 complaint?
*informal* complaint about airport to ADO - resolved at local level
140
What is a Part 16 complaint?
formal complaint against airport, goes directly to Office of the Chief Counsel
141
The FAA will notify an airport of a Part 16 complaint within ____ days.
20
142
The aiport has ____ days to repond to a Part 16 complaint
20
143
If a Part 16 complaint goes to a hearing, further investigation may be done by this FAA office:
Office of Airport Safety and Standards
144
A non-final decision on a Part 16 complaint would take place within ____ of last pleading after which either part would have ___ days to appeal.
120 (then either party has 30 days to appeal)
145
Which agency of the UN establishes uniform international standards for avaition and develops Standards and Recommended Practices (SARPS)?
ICAO
146
Annex 14 covers what?
aerodromes (airports). annexes are like our FARs
147
What system is managed by CBP
APIS - advanced pax information system (pax manifests checked by CBP personnel)
148
AAAE
5,000 members
149
ACI
represents aiprorts
150
A4A/IATA
formerly ATA - represents commercial airlines
151
RAA
Regional Airline Association
152
AOPA
Aircraft Owners and Pilots Association (implemented airport watch program)
153
NBAA
National Business Aviation Association (world's largest civil aviation trade show)
154
NATA
National Air Transport Association (FBO's, flight schools, aircrat maintenance operators)
155
ALEAN
Airport Law Enforcement Agencies Network
156
NASAO
Nat'l Assoc. State Avaition Officials
157
AIA
Aerospace Industries Association - manufactuers and supplies of aircraft and space systems
158
This process clarifies thinking, validates assumptions, identifies weaknesses and strengths and consider new approaches.
Strategic Plan (long-term, high level.....describes what products and services an aiprort will provide over a specified period)
159
What is a critical part of strategic planning?
public input
160
What is the Core Planning Team?
defines process, faciliates meetings, develops communication plan, action plan, and evaluating strategic plan
161
Elements of strategic plan:
1. vision statement
2. mission statement
3. SWOT
4. strategic issues
5. strategies
6. peformance indicators
162
How does a business plan differ from a strategic plan?
business plans are short to medium term, strategic plans are medium-long term
163
Every strategic plan should ask these 3 questions:
1. where is the airport now?
2. where does the aiprot want to be and when?
3. how will the aiport get there?
164
Benefits from developing strategic plan:
incraesed efficiency; establishment of performance metrics, stakeholder buy-in
165
What is aeronautical use?
any activity that involves, makes possible, is required for the safety of, or otherwise directly related to the operation of an aircraft
166
Examples of non-aeronautical revenue?
industrial park land rent, res centers, catering facilities, rental car operations, parking (usually largest source), concessions
167
Examples of non-operating revenue?
PFCs, CFCs, interest income, grants
168
Examples of aeronautical revenue?
landing fees (largest for commercial airports), terminal/hangar rents, fuel taxes (largest for GA airports) or flowage fees
169
Which type of revenue has limitations on setting rates? And which does not?
aeronautical (limits), non-aeronautical (none)
170
Define Aeronautical Use Agreement:
identifies the legal, financial and operational relationship between airport operator and the airlines
171
What is a signatory vs non-signatory carrier?
signatory carriers signed the AUA (usally means lower landing fees and other benefits)
172
Signatory carriers may exercise significant control over an airport's capital budgeting process under provisions in a use agreement known as what?
Majority In Interest clauses
173
What are the two primary methods for determining rates and charges?
residual and compensatory
174
Describe the residual method:
airline assumes risk, monies left over are refunded to airlines (or loss is made up by airlines); single cash register
175
Describe the compensatory method:
airport assumes risk, airlines charged for the actual cost of the facilities and services they use, afees/rates set based on cost centers, airport keeps nonairline revnues
176
T/F: The rate base can include environmental costs, insurance costs, noise abatement costs, debt service, cash reserves and contingencies.
True
177
Any reasonable method of rate setting may be used (examples)
historic, valuation, direct negotiation, FMV
178
Four types of leases:
1. straight (constant rate)
2. graduated (changes at certain intervals)
3. revaluation (periodic revaluation)
4. percentage (% of sales -- common w/concessions)
179
Three approaches to leasing:
1. airport mgmt directly leases and manages space
2. institutional operator (outsources)
3. development co or retail expert to provide management for specific service (thing JBT for loading bridges)
180
This type of interest cannot be placed on the land under a ground lease:
mortgage interest
181
Which part of a lease outlines who is who/where?
Recitals
182
Key financial statements:
balance sheet, income statement, cash flow statement
183
Balance sheet/Statement of Net Assets
assets minus liabilities / short (s financial position
184
Assets =
liabilities + owner's equity
185
Two types of depreciation:
straight line or accelerated
186
Income Statement/Statement of Activities
Revenues minus expenses / uses accrual accountin, shows changes over a period of time, used to determine ratios, "the bottom line",
187
EBIT
earnings before interest and taxes (operating margin)
188
COGS
Cost of Goods Sold
189
Cash Flow Statement
starting and ending balances (like a personal bank statement), does not use accrual accounting
190
MAG
minimum annual guarantee (common with concessions)
191
GAAP
generally accepted accounting principles
192
Statement of Shareholders Equity is aka:
Statement of Retained Earnings
193
Quarterly financial reports will include Management's DIscussion and Analysis which provides:
detailed discussion about financial health and explains poisitive/negative trends and anomalies
194
Three types of financial ratios:
leverage, profitability, effectiveness
195
Current Ratio =
current assets / current liabilities (should be >1.0)
196
Debt to Equity Ratio =
total liabilities / shareholder equity (>1 means overleveraged, how much debt is carried per dollar of equity)
197
Quick Ratio =
current assets - inventory / current liabilities (can debts be paid with cash on hand without selling inventory??)
198
P/E Ratio =
current stock price / earnings per share
199
Profit Margin =
net income / revenue x 100 (% from each dollar earned available for retained earnings)
200
Inventory Turnover =
COGS / average inventory (how many times during the period was the inventory sold/replaced)
201
Return on Assets =
net income / total assets (are your assets effectively earning you money?)
202
Business transactions are recorded where?
the General Journal ("book of original entry"), then later to teh General Ledger
203
_____ is a financial plan showing how the airport is to be operated in the short-term.
operating budget
204
Budgeting best practices are offered by the NACSLB
National Advisory Countil on State and Local Budgeting
