Which of the following is a benefit of using a budget?
a. Helps to keep track of the money you receive
b. Helps to prioritize your spending
c. Helps reach short- and long-term financial goals
d. All of the above
Answer – d. All of the above.
A budget can be defined as the estimation of the expenses and revenues that can be made for the specified future time period. The budgeting can occur on a regular basis based on the individual budgets that can be re-evaluated regularly. The budgets can be developed for a certain entity that wants or needs of spending money that include the businesses and governments and the households that have different income levels. The budget is considered to be the financial plan for the definite time period which can hugely enhance success levels of the financial undertakings. The corporate budgets are considered to be important for the operations of organizations at the peak levels of efficiency. The personal budgets can be considered as hugely useful in supporting the individuals and their families towards managing the finances. The budget is considered to be the microeconomic concept which can reveal the trade-offs which are made while exchanging a good for another. The surplus budget is based on the profits that are anticipated, the balanced budget is related to revenue which are considered to be the equal expenses and the deficit budget is based on the expenses that can exceed the revenues. Corporate budget is based on development of assumptions related to an upcoming period of budget. The assumptions are based on the projected trends of sales, the cost trends and the overall outlook of the economy, sector or market. All the options that have been provided as a part of the question including, helping to keep track of the money you receive, helping to prioritize your spending and helping the reach short- and long-term financial goals can be fulfilled by the development of an appropriate budget for the corporates, for personal use and the sales budgets.
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