What is a budget? Describe the four-step process of figuring out your monthly bu

Question

What is a budget? Describe the four-step process of figuring out your monthly budget.

What is a budget?

A.

A budget is the value obtained from subtracting your monthly expenses from your monthly income.

B.

A budget keeps track of how much money you are spending on your credit cards and any interest you are being charged and helps to determine how much interest you can afford to pay.

C.

A budget keeps track of how much money you have coming in and how much you have going out and helps to determine what adjustments need to be made.

D.

A budget is a list of your monthly income, including wages, bank interest, and any other income such as once-per-year payments.

Describe the four-step process of figuring out your monthly budget. Choose the correct answer below.

A.

First, list all your monthly income. Next, list all your monthly credit card debt. Then subtract your total credit card debt from your total income to determine the amount of interest being paid each month. Finally, make adjustments as needed.

B.

First, list all your monthly income. Next, list all your monthly expenses. Then add your total expenses to your total income to determine your net monthly cash flow. Finally, make adjustments as needed.

C.

First, list all your monthly income. Next, list all your monthly expenses. Then subtract your total income from your total expenses to determine your net monthly cash flow. Finally, make adjustments as needed.

D.

First, list all your monthly income. Next, list all your monthly expenses. Then subtract your total expenses from your total income to determine your net monthly cash flow. Finally, make adjustments as needed.

Explanation / Answer

.A budget is estimation or calculation of total expenditure and total receipt over the period of time so the option"C" is the most correct option which says  A budget keeps track of how much money you have coming in(total reciepts or your total income ) and how much you have going out (total expenditure) and helps to determine what adjustments need to be made

four-step process of figuring out your monthly budget

Option 'D' is the most accurate which says First, list all your monthly income. Next, list all your monthly expenses. Then subtract your total expenses from your total income to determine your net monthly cash flow. Finally, make adjustments as needed.

In private finance a budgeting is done by first calculating your income then expenditure is calculated and then expenditure is subtracted from income and if it is positive then your surplus income is saved and if the value is negative then loan is taken to fill the deficit

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