Question

Accounting

Quickbooks Online Advanced

What are 2 key benefits of budgeting?

a)Budgets can automatically forecast trends in revenue and expenses

b)A budget can be used to estimate income and expenses to help with cash flow

c)A mid-year revised outlook can be created with actuals for the first part of the year and revised forecast for rest of year when created mid-year

d)The budget can be adjusted for projected payables and receivables based on terms

e)A budget can be created for Loan Balances

Answer 1

Solution: 2 Keys benfits of budget are out of the given options are:

a) Budgets can automatically forecast trends in revenue and expenses : A budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis.

b)A budget can be used to estimate income and expenses to help with cash flow: A budget is a microeconomic concept that shows the trade-off made when one good is exchanged for another. In terms of the bottom line—or the end result of this trade-off—a surplus budget means profits are anticipated, a balanced budget means revenues are expected to equal expenses, and a deficit budget means expenses will exceed revenues. To manage your monthly expenses, prepare for life's unpredictable events, and be able to afford big-ticket items without going into debt, budgeting is important. Keeping track of how much you earn and spend doesn't have to be drudgery, doesn't require you to be good at math, and doesn't mean you can't buy the things you want. It just means that you'll know where your money goes, you'll have greater control over your finances.