Question

s&finance 09
which statements best explain why income should be recorded at the beginning of a budget? check all that apply.
□ income is the foundation for a budget.
□ budgets are based on variables, rather than on income.
□ putting income at the top helps to keep this number in mind.
□ placing income at the top allows expenses to be subtracted easily.
□ tracking income is more important than tracking expenses.

Explanation:

• "Income is the foundation for a budget": A budget is planned around how much money is available (income), so it's the base.
• "Putting income at the top helps to keep this number in mind": Recording income first makes it easy to recall the available funds when planning expenses.
• "Placing income at the top allows expenses to be subtracted easily": Once income is known, expenses can be deducted from it to manage the budget, and starting with income simplifies this calculation.

The other options are incorrect: Budgets do rely on income (so "Budgets are based on variables, rather than on income" is wrong), and tracking income and expenses are both important (so "Tracking income is more important than tracking expenses" is wrong).

Answer:

• Income is the foundation for a budget.
• Putting income at the top helps to keep this number in mind.
• Placing income at the top allows expenses to be subtracted easily.