Which of the following are the components of a budget?Revenue BudgetCapital BudgetBoth (a) and (b)Neither (a) nor (b) (2024)

FAQs

Which of the following are the components of a budget?Revenue BudgetCapital BudgetBoth (a) and (b)Neither (a) nor (b)? ›

The budget has two broad components: Revenue budget and Capital budget. Revenue budget includes revenue expenditure and revenue receipts. Capital budget includes capital expenditure and capital receipts. a and b are two co-primes.

The Key Components of a Budget

Learn about net income, fixed expenses, variable expenses, and discretionary expenses and examples of each.

Hence The essential components of a budget are Income and Expenditure.

Capital budget is a statement of the government's estimated capital receipts and capital expenditure. Revenue budget is a statement of the government's estimated revenue receipts and revenue expenditure for a period of one financial year. Capital budget covers capital items which are of non-recurring nature.

The Four Main Types of Budgets and Budgeting Methods. There are four common types of budgets that companies use: (1) incremental, (2) activity-based, (3) value proposition, and (4) zero-based.

The partial budget has four categorical parts: additional income, reduced costs, reduced income and additional costs. Additional income. A proposed change may bring additional income from an enterprise if it is added or increased in size or if output is increased for the particular enterprise.

The two main components of a budget are income and expenses. These components form the foundation of a budget plan and help individuals, households, businesses, and organizations manage their finances effectively.

What are the 4 steps of the budgeting process? ›

phases: budget preparation, budget legislation or authorization, budget execution or implementation and budget accountability. While distinctly separate, these processes overlap in implementation during a budget year.

Introducing the three P's of budgeting

Think of it more as a way to create a plan to spend your money on things that matter to you. Get started in three easy steps — paycheck, prioritize and plan.

For any organization, a budget, whether done annually or conducted throughout the year in the form of rolling forecasts, is a critical component for success. Any successful budget must connect three major elements – people, data and process.

Capital expenditures are typically one-time large purchases of fixed assets that will be used for revenue generation over a longer period. Revenue expenditures are the ongoing operating expenses, which are short-term expenses used to run the daily business operations.

Capital budgeting is the process by which investors determine the value of a potential investment project. The three most common approaches to project selection are payback period (PB), internal rate of return (IRR), and net present value (NPV).

Some of the examples of revenue budget include income from taxes, dividends, investments, and profits. Capital budget examples include disinvestments that reduce the government's share of total assets and increase liabilities.

The main financial system components include financial institutions, financial services, financial markets, and financial instruments.

Financial statements can be divided into four categories: balance sheets, income statements, cash flow statements, and equity statements.

Budgeting for the national government involves four (4) distinct processes or phases : budget preparation, budget authorization, budget execution and accountability.

Most financial management plans will break them down into four elements commonly recognised in financial management. These four elements are planning, controlling, organising & directing, and decision making.