Which of the following is true of a budget?
A)It shows the computation of the interest on a loan.
B)It is a schedule of personal investments.
C)It is a list of prepaid expenses.
D)It is a detailed financial forecast.
E)It is a set of personal financial objectives.

Question

Quizplus · Accepted Answer

A budget is a detailed financial forecast, which includes a plan for income and expenses over a specific period of time, usually a month or a year. The main purpose of creating a budget is to help individuals, households, or businesses to manage their finances more efficiently by tracking their income and expenditures and making adjustments where necessary to achieve their financial goals. A budget may also include a plan for savings, investments, and debt repayment. Therefore, options A, B, C, and E are incorrect.

Which of the Following Is True of a Budget