Exam 3 Concepts check #1
Time Value of Money
1. Compensation for the use of a resource.
2. Simple vs. Compound interest
Simple interest is only paid on the principal amount
Compound interest is paid on the principle plus any previously earned in
Two competing economic systems
o Command: directed by a centralized government
o Market: private enterprise. Flexible, practical, and changeable. No center
May be practical, but they also rest upon the fundamental principle of individual
Exam #2 Concepts check #3
1. Base Valuation
Willing Buyer and Willing Seller Test- not the original purchase price
Highest and best use of property- key issue
2. Valuing the Base
Appraised value: the amount the property would sell for in a normal tr
Exam #2 Concepts Check #5
Excise Taxes (aka selective sales taxes)
1. Benefits based- often % of price (hotel/motel, motor fuels)
Recover part of cost of a public service from people who benefit
2. Sumptuary- generally per unit (sin tax: alcohol, cigare
1. Benefits of Volunteers
Specialized skills: Administrative, Crafts, Professional
Enhanced support and advocacy
Better understanding of needs
Humanize the experience for program partici
Exam #2 Concepts Review #7
1. Non Profit Revenue
2. Non-profit organization: most are granted tax exempt status
3. Formed to operate for some religious, charitable, educational, literary, or scientific
4. Contributors allowed to take tax deductio
Exam #3 Concepts Check #2
1. A plan for the funding, acquisition, and development of public land, improvements,
equipment, and facilities for use in the immediate, intermediate, and long-term future.
2. Items included generally are expen
Exam #3 Concepts Check #3
Accounting & Reporting
1. Roles of Accounting
Was the money used as intended?
Can we document that money was used properly?
Determine financial condition
How much money is on hand?
Planning and Bu
1. What are VALUES?
Any object or quality desirable for as a means or as an end in itself
2. What are ETHICS?
The principles, norms, and standards of conduct governing an individual or group
Principles of right livin
Exam 2 Review Day 1
Public Revenues- General Concepts
Tax: Required payment to some entity
Tax Base: something on which tax revenue is collected. What tax is paid on. Total amount
of transaction and gives you the amount of tax you have pay. Total of incom
Exam #2 Review Day 2
1. Incidence/Burden- who actually pays the tax
2. Economic Incidence- group that has to pay the tax.
Are the taxed goods necessary?
Ex: tax on apple farmers might actually be paid by owners of agricultural land or
consumers of app