Question

Arrange the steps involved in preparing a budget in correct order of implementation.
A. Balancing expected income and expenditure
B. Estimating the cost of each item accurately
C. Listing all desired items
D. Estimating the expected income
E. Checking plan for realism

• A. A, B, C, D, E
• B. A, C, E, B, D
• C. B, A, D, C, E
• D. C, B, D, A, E

Hint:

Budgeting is a systematic process that ensures you have enough income to cover your expenditures and achieve your financial goals.

Answer 1

The Correct Option is D

The correct order of steps for preparing a budget is:
1. Listing all desired items (C).
2. Estimating the cost of each item (B).
3. Estimating expected income (D).
4. Balancing income and expenditure (A).
5. Checking the plan for realism (E).