Question

Noah’s family has been out of control with their spending lately. They have decided to come up with a spending plan to help them manage their money. What is Noah’s family going to create?
A. a personal financial statement


B. a stock portfolio


C. a budget


D. a net worth statement

Answer 1

Answer:

The correct answer is C. A budget.

Explanation:

A budget is a document whose function is to organize the money flows of a certain organization, reflecting the financial effects of the different decisions that the organization makes. Thus, the budget is a coordination between the wants and needs, and the economic possibilities that the organization has to meet those wants and needs. In addition, a budget allows to determine economic and financial objectives, and control the entry and exit of money efficiently, to avoid certain unnecessary expenses, thus optimizing the return on money.