Budgeting for Business

Budgeting is the

• A. Process of accomplishing goals

• B. Development of regulations

• C. Decision to make judgments

• D. Allocation of monetary funds

Budgeting provides a guide for efficient business decisions.

• A. True

• B. False

Which of the following is NOT a step involved in creating a budget?

• A. Gather financial records

• B. Track spending

• C. Expand earning avenues

• D. Balance the budget

Rent is an example of a __________ expense.

• A. Fixed

• B. Variable

Gross income is income after the cost of goods and taxes are deducted.

• A. True

• B. False

Which of the following is NOT an example of an asset?

• A. Children

• B. Cash

• C. Equipment

• D. Buildings

Which of the following is NOT an example of a liability?

• A. Cash

• B. Equipment loans

• C. Charge accounts

• D. Rental fees

The presentation recommends updating and modifying your budget how often?

• A. Annually or quarterly

• B. Monthly or weekly

• C. Daily or whenever making purchases

• D. Never

Net worth = assets - liabilities

• A. True

• B. False

The two basic parts of a budget are __________ and __________.

• Resources; Consumption

• Equity; Debt

• Income; Expenses

• Wants; Needs