Question

Each month, Jackie budgets $1640 for fixed expenses, $1320 for living expenses, and $260 for annual expenses. Her annual net income is $38,640.Which statement best describes her monthly budget?

a. it shows a deficit of $260.
b. it shows a surplus of $260.
c. it shows a deficit of $210.
d. it is balanced.

Answer 1

d. it is balanced.

Step-by-step explanation:

A budget is defined as the amount of money that is set aside for some future purpose. It is a way to effectively manage funds and avoids wastage. When one is going out of their budget they know is is an unallocated cost and this will lead to unbalanced funding for needs.

In this scenario the total budget of Jackie is

Monthly budget= fixed expenses+ living expenses+ annual expense

Monthly budget = 1,640+ 1,320+ 260

Monthly budget= $3,220

Yearly budget= monthly budget* 12

Yearly budget= 3,220* 12= $38,640

This is a perfect balance with her annual net income.