Budgets, Income, and Expenses

Why are records kept?

• To observe financial progress

• For decoration

• To increase expenses

• To reduce income

What is required for State Degrees in FFA?

• At least two years of complete records

• A single year of records

• Only financial records

• No records

What is the purpose of determining a breakeven?

• To minimize income

• To ignore expenses

• To maximize profits

• To determine the minimum amount of money needed to cover expenses

What is a budget?

• A record of past earnings

• A contract for business agreements

• A list of employees

• An estimate of expenses and income for a business cycle

When should a budget be developed?

• Midway through the business cycle

• At the end of the fiscal year

• After the enterprise is completed

• Before starting an enterprise

What should be included in a budget?

• Business agreements

• Expenses and income

• Only profits

• Only losses

What is a business agreement?

• A list of business expenses

• A budget plan

• A contract listing responsibilities and profit division

• A tax return document

When should a business agreement be developed?

• After the budget is completed

• Simultaneously with the budget

• Before any planning

• At the end of the enterprise

What is the basis for business planning?

• Random selection

• Past experiences

• Personal preference

• Budget

What does a budget summarize?

• Where money will be needed

• Employee names

• Business failures

• Product descriptions