ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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budget
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personal finance
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Either A or B
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None of the above
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Detailed explanation-1: -Cash flow statement summarizes all of the income and outgo (spending) over a certain time period, A budget is a written plan for saving, giving and spending. The cash flow statement is reflective of what has already taken place, and a budget is a proactive plan of what will take place.
Detailed explanation-2: -Budget. A written cash flow plan.
Detailed explanation-3: -A budget differs from cash flow statement because a budget both projects how you expect to allocate the cash flow and records how the cash flow was actually spent at the end of the month.
Detailed explanation-4: -A cash flow budget is an estimate of all cash receipts and all cash expenditures that are expected to occur during a certain time period. Estimates can be made monthly, bimonthly, or quarterly, and can include nonfarm income and expenditures as well as farm items.
Detailed explanation-5: -Preparing a sales forecast. Projecting your anticipated cash inflows. Projecting your anticipated cash outflows. Putting the projections together to come up with your cash flow bottom line.