If a budget does not balance, what steps, if any, can be taken to bring income and expenditure into line?
A) Increase Income
B) Nothing
C) Decrease Expenditure
D) Both a and c

Question

Quizplus · Accepted Answer

In order to bring income and expenditures into line, a business must do something; hence choice b (doing nothing) is incorrect. Increasing income (choice a) and decreasing expenditures (choice c) are both appropriate actions to bring income and expenditures into line. Hence the correct answer is D.

If a Budget Does Not Balance, What Steps, If Any