ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A detailed and realistic budget is one of the most important tools for guiding your business. A budget provides essential information for operating within your means, managing unexpected challenges, and turning a profit. A proper budget will identify available capital, estimate expenditures, and anticipate revenues.

Detailed explanation-2: -where you are today: While a budget helps you map out your key expenses and plan for the weeks and months to come, a financial plan allows you to set a course toward funding financial goals that are 5, 10, or 20 years down the road.

Detailed explanation-3: -Sales Budget: The degree of accuracy with which sales are estimated will determine the practicability of operating budgets. A sales budget is the starting point on which other budgets are also based. A sales budget lays down potential sales figures in value as well as in quantity.

Detailed explanation-4: -The authorization stage. The commitment stage. The verification stage. Payment authorization or payment order stage. Payment stage. Accounting stage.