Question

Arrange the steps involved in preparing a budget in correct order of implementation.
A. Balancing expected income and expenditure
B. Estimating the cost of each item accurately
C. Listing all desired items
D. Estimating the expected income
E. Checking plan for realism

• A. A, B, C, D, E
• B. A, C, E, B, D
• C. B, A, D, C, E
• D. C, B, D, A, E

Hint:

Budgeting is a systematic process that ensures you have enough income to cover your expenditures and achieve your financial goals.

Answer 1

The Correct Option is D

The proper sequence for budget preparation involves:
1. Identifying all desired expenses (C).
2. Determining the price of each expense (B).
3. Predicting anticipated earnings (D).
4. Aligning earnings with expenses (A).
5. Evaluating the plan's feasibility (E).