How would you assess the accuracy of your budget?
A) Compare your cash inflow forecast vs. actual cash inflows.
B) If you have money left at the end of the month, the budget is fine.
C) Compare cash outflow forecast vs. actual cash outflows.
D) A and C are both necessary.

Question

Quizplus · Accepted Answer

To accurately assess the accuracy of a budget, it's essential to compare both the forecasted vs. actual cash inflows and outflows. This comprehensive approach ensures a detailed understanding of where the budget meets expectations and where it deviates, allowing for more informed financial planning and adjustments.

How Would You Assess the Accuracy of Your Budget