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business chapter 5

household budgets

QuestionAnswer
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
Created by: angel555
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