Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

did i answer the question correctly: It is important to remember that there are 2 sides to the budget. There is revenue and there are

did i answer the question correctly: It is important to remember that there are 2 sides to the budget. There is revenue and there are expenses. What happens when you misjudge the revenue portion? I think it's crucial to consider both revenue and expenses. Overestimating income can lead to problems like fund shortages, cutbacks, borrowing, and can affect future plans and trust. If income is overestimated, there may be less money than planned, leading to a fund shortage. This could require cost-cutting or borrowing, which could reduce spending on areas like marketing or staff or result in debt. This can also impact future planning, making us more cautious or creating a cycle of shortages. Consistent overestimation can lead to loss of trust from stakeholders, who may question your management skills. A balanced budget, considering both income and costs, ensures financial stability and growth

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

7th Edition

978-0470477151, 978-0-470-5562, 470556242, 0-470-55624-2, 9780470556245, 978-0470507018

More Books

Students also viewed these Accounting questions