Final answer:
The document most useful for tracking planned spending patterns for the next month is a budget. It helps manage finances by projecting income and expenses, thereby avoiding overspending and planning effectively for both expected and unforeseen costs. The correct option is c.
Step-by-step explanation:
The document that would be most useful to track planned spending patterns for the next month is a budget. A budget is a financial plan that outlines projected income and expenses over a certain period of time, helping individuals or organizations manage their money effectively. It compares the money you expect to earn with the expenses you anticipate, which assists in making informed financial decisions and avoiding overspending.
Other options like a balance sheet or a cash flow statement offer different information. A balance sheet represents a snapshot of an entity's financial position at a particular moment in time, showing assets, liabilities, and owner's equity. A cash flow statement, on the other hand, reveals the movement of cash in and out of a business over a period, but does not necessarily help plan for future spending in the same way a budget does.
Budgets are essential tools for planning future spending and ensuring that revenue is sufficient to cover projected expenses. Creating and sticking to a budget can help prevent a deficit, which is the annual budget shortfall between revenues and expenditures. By being proactive with a budget, you can adjust your spending habits and set money aside for both expected and unexpected costs.
Chart comparisons like those demonstrating the effects of a rising or falling budget deficit are also helpful to understand the wider implications of spending relative to income and how it might affect an economy or financial standing.
hence, Option c is correct.