American_Bankers_Association
CTFA · Question #53
Even if, the annual balances, in certain months expenses may exceed income, causing a monthly budget deficit. Likewise, a surplus occurs when income in some months exceed expenses. It remedy may be:
The correct answer is A. Shift expenses from months which budget, deficits to months with surpluses for, (or alternatively, B. Use savings, investments, or borrowing to cover temporary deficits. See the full explanation below for the reasoning.
Fiduciary and Trust Activities
Question
Even if, the annual balances, in certain months expenses may exceed income, causing a monthly budget deficit. Likewise, a surplus occurs when income in some months exceed expenses. It remedy may be:
Options
- AShift expenses from months which budget, deficits to months with surpluses for, (or alternatively,
- BUse savings, investments, or borrowing to cover temporary deficits
- CEstimate genuine expenses
- DPay off your credit card
How the community answered
(15 responses)- A73% (11)
- C20% (3)
- D7% (1)
Topics
#budget deficit#budget surplus#cash flow management#expense planning
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