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3 years ago

What is the reason it's better to underestimate your income instead of overestimating when creating your budget?

Business

1 answer:

Alik [6]3 years ago

6 0

Answer:

Underestimating your income is a conservative and healthy measure that can avoid financial problems.

Explanation:

Underestimating your income is a conservative and healthy measure, such as it is overestimating your expenses.

Specially when your income is variable iit can be hard to predict. You will be safer both if your income lowers or your unpredictable expenses increase.

There are many unpredictable situations that could put you in a difficult situation: a disease, a natural disaster, the need to help a family member or friend in trouble. If any of these unfortunate circumstances arises and your budget is too tight, you could see yourself in financial trouble.

But, if you if all is smooth you will have in a happy situation, you will have a surplus which can use for savings, for an important purchase, or for vacations.

It is better to be cautious than to regret later!

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What vision do you have for your own future?

kondor19780726 [428]

No one can write down a vision for your future, its your vision and future.

4 0

3 years ago

One bag of flour is sold for $1.00 to a bakery, which uses the flour to bake bread that is sold for $3.00 to consumers. A second

Phoenix [80]

Answer:

The correct answer is option b.

Explanation:

GDP is a measure of economic growth that shows the level of final goods and services produced in an economy in a year. It includes only final goods and services, intermediate goods are not included.

So here the value of flour used to make bread will not be included as it is an intermediate good. But the value of bread will be included. The value of the second bag of the floor will be included as it is a final good sold to the consumer.

Increase in GDP

= $3 + $2

= $5

8 0

3 years ago

Adjustments for unearned revenues: Select one: a. decrease liabilities and increase revenues. b. increase liabilities and increa

Mnenie [13.5K]

Answer:

(D) decrease revenues and decrease assets

Explanation:

Since the revenue is unearned, its entry in the books needs to be reversed.

When a revenue was recorded in the books, the like journal entry would have been.

Debit Cash/Bank/Receivables Account (thus increasing asset)

Credit Revenue Account (thus increasing revenue)

There, reversing the entry will involve decreasing revenue and decreasing asset.

8 0

3 years ago

An economy is operating with output $300 billion above its natural level, and fiscal policymakers want to close this expansionar

topjm [15]

Answer:

$120 billion

Explanation:

Economy operating at $300 billion above its natural level of output.

Marginal propensity to consume, MPC = 3/5 = 0.6

For closing this expansionary gap, the government have to decrease its spending by the amount calculated as follows:

Spending multiplier:

= 1/ (1 - MPC)

= 1/ (1 - 0.6)

= 1/ 0.4

= 2.5

Hence, the government spending reduces by

= Expansionary gap ÷ Spending multiplier

= $300 ÷ 2.5

= $120 billion

4 0

3 years ago

John has just paid off the full balance of his credit card. What happens to the

Natasha_Volkova [10]

Answer:

I think the answer is B. If It's correct please give the brainliest award.

8 0

3 years ago