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.
Answer
A
Income is the foundation for a budget.
B
Budgets are based on variables, rather than on income.
C
Putting income at the top helps to keep this number in mind.
D
Placing income at the top allows expenses to be subtracted easily.
E
Tracking income is more important than tracking expenses.
Explanation
Income is the foundation of a budget because it shows how much money is available to plan with. Listing it first keeps that amount visible, and then expenses can be subtracted from it to see what remains. Budgets are based on income, not variables, and tracking income is not inherently more important than tracking expenses.
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