ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Cash inflows and cash outflows are used to calculate the budget. Operating expenses are a part of the total cash outflow. Setup cost is incurred for starting the business and hence is excluded in the budget calculations.

Detailed explanation-2: -And the internet is full of articles on the elements needed to create an effective budget: income, fixed expenses, variable expenses, and unplanned expenses. Those things are important, and plenty of financial experts can tell you how to incorporate them into a budget.

Detailed explanation-3: -A budget should include your income, savings, debt repayment, and general expenses.

Detailed explanation-4: -Financial budget It factors in assets, liabilities, and stakeholder’s equity-the important components of a balance sheet, which give you an overall idea of your business health.