The first step of the budgeting process is to:

a) calculate each type of income expense in the amount of net income or loss

b) prepared list of each type of income and expense that will be part of the

budget

c) gather accurate financial information

d) explain the budget to people who need to make financial decisions

Question

Business

Marco Beasley

31 March, 02:54

The first step of the budgeting process is to:

a) calculate each type of income expense in the amount of net income or loss

b) prepared list of each type of income and expense that will be part of the

budget

c) gather accurate financial information

d) explain the budget to people who need to make financial decisions

+2

Answers (1)

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Skyla Conley · Answer 1

b) prepared list of each type of income and expense that will be part of the budget.

Explanation:

A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.

The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.

The final step by the management of an organization in the financial decision making process is making necessary adjustments to the budget.

The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.