ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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income
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savings
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expenses
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None of the above
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Detailed explanation-1: -An expenditure is money spent on something. Expenditure is often used when people are talking about budgets.
Detailed explanation-2: -The primary purpose of a budget is to make sure that an entity makes the most out of their income. A budget helps one to logically come up with a financial plan on how an entity will spend its revenue; thus, making the most out of its income.
Detailed explanation-3: -A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term.
Detailed explanation-4: -An operating budget is a detailed statement showing all the operational expenses and revenues (income) expected during a particular period of time. An operating budget indicates how much profit an organization will generate given the assumption of revenues and expenses for a specific future period of time.