Question

Which type of budget indicates more expenses than income?

O O O O
a deficit budget
a balanced budget
a debt budget
an equity budget

Answer 1

a deficit budget

Step-by-step explanation:

A budget is a plan detailing how an individual, a firm, or a government will spend its anticipated revenue. In short, a budget is a plan of expenditure. Budgets are usually prepared at the beginning of a period to guide the use of available resources.

An ideal situation is when the planned expenditure equal to the expected income. Such a plan is called a balanced budget. However, in some circumstances, the planned expenditure exceeds the projected income. That budget is a deficit budget.