You Are About to Start Your First Semester in College

question 31

Essay

You are about to start your first semester in college and have decided to work out a budget for the year.
a. What are the advantages of preparing a budget in advance?
b. What information do you need to gather to be able to write up your budget?
a. A budget will help you deal with the ups and downs of your finances. It will help prepare you for the world of work. Most of all, a budget provides a sense of security, allowing you to take control of your spending.
a. What are the advantages of preparing a budget in advance?
b. What information do you need to gather to be able to write up your budget?
b. You will need to know your monthly income and expenditures. To uncover your expenditures, keep track of everything you spend for a week. Also, go through any records you've kept to identify where you've spent money for the last year. You will also need to list each source of income.

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Definitions:

Benchmark

A Benchmark is a standard or point of reference against which things may be compared or assessed.

Inventory Turnover Ratio

A metric showing how many times a company has sold and replaced its inventory over a specific period, indicating efficiency in sales and inventory management.

Inventory Accounting Method

Techniques used to calculate the cost of goods sold and value of inventory, including FIFO, LIFO, and weighted average cost methods.

Current Ratio

A financial metric assessing a firm's capability to settle debts due within a year.