1.2 - Individual Budgeting and Financial Planning Flashcards
1
Q
Budget definition
A
An estimate of income and expenditure for a set period of time
2
Q
Cash flow forecast definition
A
Estimate of the amount of money you expect to flow in and out of your business
3
Q
Why do the government publish an annual budget?
A
To show an estimate or forecast of the income from taxation that it expects to receive over the coming year and what it expects to spend
4
Q
If an individual appears to be heading towards a deficit in their budget, they can take steps such as:
A
- Reducing planned expenditure
- Increasing income
- Using an overdraft
