Question

Which type of budget indicates more expenses than income?

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 showing how an individual or an institution will spend its income. It shows the expected income and the details of planned expenditure. A budget is prepared at the beginning of a period. Ideally, the income side and the expenditure side of a budget should balance.

In some cases, the planned expenditure exceeds the projected income, indicating a shortage of income. Such a budget is called a deficit budget.