ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -When income is less than expenses, you have a budget deficit.-too little cash to provide for your wants or needs. A budget deficit is not sustainable; it is not financially viable. The only choices are to eliminate the deficit by (1) increasing income, (2) reducing expenses, or (3) borrowing to make up the difference.

Detailed explanation-2: -When you complete your budget of income and expenses, and your budget bottom line shows more money spent than brought in, this will create a cycle of debt that no one wants to have.

Detailed explanation-3: -When revenues exceed expenses there is a budget surplus; when expenses exceed revenues there is a budget deficit.

Detailed explanation-4: -The difference between income and expenses is simple: income is the money your business takes in and expenses are what it spends money on. Your net income is generally your revenue, or all the money coming into your business, minus all of your expenses. If that number is positive, your business is making a profit.

Detailed explanation-5: -Plan out Your Income and Expenditure. Prepare a budget according to your income and expenditure. Plan by Giving Priority. Avoid Eating Outside. Avoid Unnecessary Expenses. Shop Intelligently. Extra Income. Avoid Unhealthy Practices. Say Your Prayers. More items