Personal and Business Budgets

A budget is a financial plan that takes ________ and __________ into account and provides estimates for how much you make and spend over a given period of time.

• cash in and cash out

• assets and liabilities

• income and expenses

• stocks and bonds

The following statements are ways a business budget can benefit your business, EXCEPT for

• Making it more efficient.

• Pointing out funds leftover that you can reinvest.

• Not control your business spending.

• Estimating what it will take to become profitable.

The first step to creating a budget is

• Subtract fixed costs

• Determine variable expenses

• Create your profit and loss statement

• Examine your revenue

All the money that comes into the business before expenses are deducted.

• profit

• revenue

• variable costs

• fixed costs

The second step in creating a business budget is to add up all of your _________.

• profit

• revenue

• variable costs

• fixed costs

Examples of fixed costs within your business might include, EXCEPT for _________________.

• Rent.

• Debt repayment

• taxes

• utilities

_____________ expenses are those that change depending on how much you use the service.

An example of variable expenses is marketing costs.

• True

• False

An example of variable expenses is depreciation of assets.

• True

• False

When budgeting for your business by making sure you have some extra cash on hand and plan for ___________ (unexpected costs) within your budget.