The Purpose of a Budget Is to

question 109

Multiple Choice

The purpose of a budget is to

• A) determine the amount of your total liabilities.
• B) develop a plan for spending your future income over a specific time period.
• C) reduce total assets.
• D) increase monthly expenses.
• E) develop a plan for increasing credit purchases.

---

Definitions:

New Balance

The amount remaining in an account after all debits and credits have been accounted for during a specified period.

Mark-up

An increase in the original price of items meant to compensate for overhead expenditures and ensure profit.

Selling Price

The amount of money for which a product or service is sold to the consumer.

Overhead Expenses

Ongoing costs involved in operating a business that are not directly tied to providing goods or services, such as rent, utilities, and administration costs.