30 Questions
What is the total income for the month of September?
18000
What is the budget status for the month of October?
Budget deficit
What is the highest total expense among the three months?
November
What is one of the purposes of establishing a financial goal?
To purchase assets
What is an obstacle that can prevent an individual from achieving their financial goals?
Losing a job
What is the result of subtracting the total expense from the total income for the month of September?
Budget surplus
What percentage of the budget is allocated for Car maintenance?
10%
What is the main purpose of the strategic plan in personal budgeting?
To articulate the vision and mission of the organization
What is the recommended basis for revenue projection in budgeting?
Both historical financial performance and projected growth income
What is the main purpose of fixed cost projection in budgeting?
To predict monthly predictable costs
What percentage of the budget is allocated for Savings?
9%
What is the primary purpose of a personal budget?
To let you and your partner see where the money goes
What is the first step in developing and managing a personal budget?
Strategic plan
What type of expense costs the same amount each month?
Fixed expense
Which of the following is an example of a variable expense?
Buying clothes
What is the definition of income?
The money earned from work, investments, or business
What is the benefit of budgeting in an organization?
It promotes essential principles of communication and coordination
Which of the following is a source of income?
Selling a asset
What is a key principle of budgeting in relation to the people involved in the process?
To ensure that all formally involved in the budgeting process agree to the final budget
What is the purpose of calculating interest and loan repayment in a budget?
To understand the total cost of borrowing money
What is a way to reduce expenses, as mentioned in the text?
Reducing use of utilities such as electricity, gas and water
What does a budget performance result of 'zero' indicate?
The budget and actual expense and income are equal
What is the term for the amount by which the budget is less than the actual income?
Surplus
What is the purpose of comparing actual expense and income with budget expense and income?
To allocate the budget effectively
What is the characteristic of a fixed cost?
It is a minimum expense that needs to be funded in the budget
What type of expenses can be budgeted and are role-led?
Variable costs
Why is it important for not-for-profit organizations to have a targeted profit margin?
To reinvest in facilities and development of the organization
Who should approve the budget and keep current with its performance?
The governing board, president, owner or head of the organization
Why is it important for the owner to review monthly financial statements?
To monitor budget performance
How often should the budget review committee meet to monitor performance against goals?
Monthly
Test your understanding of the benefits of budgeting in organizations and personal finance, including planning, communication, and debt management. Learn how budgets guide action and help individuals track their spending.
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