ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A cash flow statement summarizes all of the income and outgo (spending) over a certain time period.
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A budget is a written plan for saving and spending.
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A budget is meant to summarize the saving and spending that has taken place over the past year.
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The cash flow statement is reflective of what has already taken place
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Detailed explanation-1: -Cash Flow Statement: A record that summarizes all of the income and outgo (spending) over a certain time period. 20.
Detailed explanation-2: -Income Statement The Income (Profit and Loss) Statement, commonly referred to as the P&L statement, summarizes the revenue and expenses for a specific time period (one month, one quarter, one year, etc.)
Detailed explanation-3: -The correct answer is option D. Preventing net operating losses is not a part of budgeting.
Detailed explanation-4: -One of the best classic budgeting styles around is the envelope method. This method is great to help you avoid overspending because you literally break up your spending categories with different envelopes and place the necessary cash inside to cover your spending for the month.