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Preparing a budget
Flashcards to revise key terms for preparing a budget
Question | Answer |
---|---|
What is a budget? | A plan that shows expected income and expenditure for a certain period of time |
How do we find net cash? | Total income- Total Expenditure |
What is opening cash? | Any money an individual or household has at the start of a given period. |
How do we find closing cash? | Net Cash + Opening Cash |
What is total expenditure? | Fixed Expenditure + Irregular Expenditure + Discretionary Expenditure |
2 effects of a budget deficit? | Not enough money to cover expenses/have to reduce their expenditure/may have to borrow money |
How can you avoid a deficit? | Work overtime/ cut discretionary spending/ shop around/ get a loan |