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business chapter 5
household budgets
Question | Answer |
---|---|
why would you prepare a budget? | live within your means, think about your spending, identify months where there are a lot of bills and expenses and plan for large items |
how would you reduce expenditure? | postpone a planned holiday and spend less on entertainment and presents |
what is a balanced budget? | when income and expenditure are exactly equal |
what is budget surplus? | when income is greater than expenditure |
what is budget deficit? | when income is less than expenditure |
what is net cash? | TOTAL income less TOTAL expenditure |
what is opening cash? | money left over from the previous month |
how would you deal with budget surplus? | save or invest it, use it to pay a loan |
how would you deal with budget deficit? | reduce expenditure, avail of credit |