When creating a budget, which of the following statements is true?

Question

Quizplus · Accepted Answer

All numbers in the budget are estimates and may not always be accurate. It is important to continually review and adjust the budget as necessary to reflect actual expenses and income. It is also important to avoid overestimating income or underestimating expenses, as this can lead to a budget shortfall. Therefore, option D is the correct statement. The other options are incorrect because: A is incorrect because bonuses and gifts are not certain sources of income and should not be factored into the budget; B is incorrect because consistency in earnings makes it easier to create a budget; C is incorrect because common financial problems cannot be maximized through budgeting, although budgeting can help address these problems. E is incorrect because overestimating income can lead to overspending and financial issues.

When Creating a Budget, Which of the Following Statements Is