Which of the following statements regarding a budget is true?
A) It shows the computation of the interest on a loan.
B) It is a schedule of personal investments.
C) It is a list of prepaid expenses.
D) It is a detailed financial report that looks forward.
E) It identifies your assets and liabilities.

Question

Quizplus · Accepted Answer

A budget is a forward-looking financial plan that outlines expected income and expenses over a period of time, usually one year. It helps individuals and organizations to control spending, allocate resources, and achieve financial goals. It is not related to the computation of loan interest, personal investments, prepaid expenses or identification of assets and liabilities.

Which of the Following Statements Regarding a Budget Is True