ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
true
|
|
|
false
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -If you spend less money on an item than you planned to spend, this is an unfavorable variance in your budget analysis. Savings should be added to income when balancing the budget. Financial goals should be set before personal goals, because your personal goals will be dependent on them.
Detailed explanation-2: -Budget. A plan that outlines what money you expect to earn or receive (your income) and how you will save it or spend it (your expenses) for a given period of time; also called a spending plan.
Detailed explanation-3: -Examples of expenses include rent, utilities, wages, salaries, maintenance, depreciation, insurance, and the cost of goods sold.
Detailed explanation-4: -Why is it good to prepare a budget analysis and examine variances? It is good to prepare a budget analysis and examine variances because it can help plan better when creating budgets in the future.