Question

Which of these is required to balance the budget for the year?

Answer 1

A sounds fair because it would make sense

Answer 2

Answer:

Correct option is (a)

Explanation:

A budget is said to be balanced when the revenue earned during the period matches the expenses incurred. In case revenue is more than expenses, there is a surplus and when expenses are more than revenue, there is a deficit. Equality between revenue and expenses make the budget balanced. A balanced budget may have revenue more than spending or expenses, but spending should not be more than revenue.

Therefore, revenue should be equal to spending to balance the budget.