Question

What is the purpose of a budget?

to keep expenses below income

to promote personal values and beliefs

to pay as few taxes as possible

to avoid the costs of compliance

Answer 1

Answer: A) to keep expenses below income

Step-by-step explanation:

If expenses exceeds income, then it's very likely that the person is borrowing money on a regular basis or they are resorting to credit cards. Being in debt isn't always bad, but it's a good idea to always keep close watch on the debt so it doesn't spiral out of control. So this is where a budget would come in to help reduce expenses.