ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -A budget can help you buy wisely and avoid credit problems. An expense is the amount of money you plan to use for a certain budget category. A difference between actual spending and budgeted spending is called a budget variance. Using your checkbook as a budgeting system does not serve the planning for spending.
Detailed explanation-2: -What does a budget show you? Detailed categories on your budget will help you make better spending decisions. A budget says what will happen with your money, while a cash-flow statement shows what already happened. How many months does it usually take for your budget to start working as a budget should?
Detailed explanation-3: -Creating a budget is an important pillar of your overall success and security. It allows you to oversee and better understand whether your business has enough revenue (incoming money) to pay its expenses. Using a budget can help you make more informed financial decisions.