Analysing a Budget (Junior Cert Business Studies): Flashcards
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Practise the cards
14 cards from this deck
What is budget analysis?
What is budget analysis?
Examining a budget to assess financial situation over time
Budget deficit meaning
Budget deficit meaning
Planned expenditure exceeds expected income
Budget surplus meaning
Budget surplus meaning
Income exceeds expenditure
Problems from budget deficit
Problems from budget deficit
Insufficient funds, reduced spending, depleted savings, borrowing
Cost of borrowing money
Cost of borrowing money
Must be repaid with added interest charges
Key advantage of budget analysis
Key advantage of budget analysis
Reveals potential problems in advance
First step in analysing a budget
First step in analysing a budget
Compare income and expenditure for each period
What to check in closing cash positions
What to check in closing cash positions
If cash reserves can cover any shortfall
Strategy to increase income
Strategy to increase income
Work additional hours or develop side income
Strategy for large bills
Strategy for large bills
Spread large payments into monthly instalments
Benefit of visual budget presentations
Benefit of visual budget presentations
Make trends easier to spot and identify patterns
What bar charts show in budgets
What bar charts show in budgets
Comparing expenditure across months or categories
What line graphs show in budgets
What line graphs show in budgets
Trends over time like increasing/decreasing spending
What CSO publishes about households
What CSO publishes about households
Household Budget Survey