Creation of a budget should involve estimating and listing expected revenues and expenses for a future period of time.
Process/Skill Questions
- Why is a budget necessary for financial evaluation and accountability?
- Who uses the budget? To whom is it important?
- What are the steps involved in creating a budget?
- What is a pro forma income statement?
- Why is it important to establish a budget and then live within that budget?
- Why is it important to save money each month?
- What unexpected events might occur that require one to use savings?