ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A budget is an estimation of the revenue and expenses over a specified future period of time and is compiled and re-evaluated on a periodic basis.

Detailed explanation-2: -An income statement is a financial statement that shows you the company’s income and expenditures. It also shows whether a company is making profit or loss for a given period.

Detailed explanation-3: -The simplest and most accurate way to determine your income and expenses is to keep all of your receipts, bills, invoices and collections and enter them into a ledger as they occur. At the end of each month, perform a reconciliation using your bank and credit statements to double-check your ledger numbers.

Detailed explanation-4: -Definition: Article 112 of the Constitution requires the government to present to Parliament a statement of estimated receipts and expenditure in respect of every financial year, from April 1 to March 31. This statement is called the annual financial statement.