4
practice testMultiple Choice

Practice Test

Question 4 • Personal Finance

The best reason to record income at the top of a budget is

Answer
A
to see that is is more important than expenses.
B
to avoid spending too much money.
C
to know how much money is available.
D
to easily add expenses to it.

Explanation

Recording income first shows the total amount of money you have available to use in the budget. You can then plan expenses based on that amount and check whether they fit within your income. Avoiding overspending is a helpful result, but knowing how much money is available is the direct reason to list income at the top.

AI-written and checked against the verified answer.

Previous
Next