ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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zero spending plan
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zero based budget
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Either A or B
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None of the above
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Detailed explanation-1: -Zero-based budgeting is a method that has you allocate all of your money to expenses for needs and wants, as well as short-and long-term savings and debt payments. The goal is that your income minus your expenditures equals zero by the end of the month.
Detailed explanation-2: -Zero-Based Budget: A cash-flow plan to assigns an expense to every dollar of your income; the goal is for the total income minus the total expenses to equal zero.
Detailed explanation-3: -A cash flow plan shows the current and future cash position of a company. It shows the expected cash flows on a monthly, weekly or even daily basis. The cash flows represent all income and expenses of the company that are related to its operating activities.
Detailed explanation-4: -Basically, a budget is a spending plan that maps out the amount of income versus the amount of expenses during a specific period of time.