What is budget simple words?
A budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis.
Budgets can be made for a person, a group of people, a business, a government, or just about anything else that makes and spends money.
What are the two main types of budget?
Based on conditions prevailing, a budget can be classified into 2 types;Basic Budget, and.Current Budget.
What is meant by budgeting?
Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do. Budgeting is simply balancing your expenses with your income.
What are the 3 types of budgets?
The three most important types of budgeting that many business firms focus on include operating budgeting, capital budgeting, and cash flow budgeting. Other budget areas exist but these three establish a detailed foundation.
What is budget and its process?
Budgeting is a process whereby future income and expenditure are decided in order to streamline the expenditure process. Budgeting is done in order to keep track of the expenditures and income. … It begins by deciding upon the financial goals according to which the budget will be made.
What is a budget purpose?
The purpose of a budget is to plan, organize, track, and improve your financial situation. In other words, from controlling your spending to consistently saving and investing a portion of your income, a budget helps you stay on course in pursuit of your long-term financial goals.