The Primary Purpose of a Budget Is

question 32

Multiple Choice

The primary purpose of a budget is:

• A)To show how resources will be acquired and used
• B)To determine which managers are not doing a good job
• C)To identify who should be promoted
• D)To find the cheapest source of supplies and expenses

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Definitions:

AGI

Adjusted Gross Income, which is gross income minus adjustments, serving as the basis for calculating taxable income.

Annuity Contract

A financial product sold by an insurance company that provides guaranteed income over a period of time for a flat or periodic payment.

After-tax Dollars

Money that an individual has left over after all income taxes have been deducted, which can then be invested or spent.

Tax-free

Financial gains or receipts that are not subject to tax by authorities, often due to specific exemptions or regulations.