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If your expenditure exceeds your income, you may incur debt as you borrow to cover the shortfall, leading to financial strain. Over time, this can result in high-interest payments, reduced savings, and potential insolvency. It may also affect your credit score, making it harder to secure loans in the future. Ultimately, persistent overspending can jeopardize your financial stability and overall well-being.
What else can I help you with?
What is the resulting figure when income is greater than expenditures?
Savings.
Why can't probability be greater than one or less than zero?
Probabilities are given a value between 0 (0% chance or will not happen) and 1 (100% chance or will happen). You cannot have a negative percent for something that will not happen or a percent greater than 100 for something that will happen.
Which two quantities does a budget balance?
A budget tries to balance revenue (or income) and expenditure. Strictly speaking, any surplus of revenue over expenditure is allocated to a different class of "expenditure": savings. So the budget needs to ensure that the expenditure is not greater than the revenue.The two do not have to be balanced in the short term. For example, you probably cannot spend in the next five minutes what you will earn in the next five minutes! You can build up savings to but big ticket items or pay for current expenditure from future savings.But there is a need to balance these two items over a reasonable time frame. Consistent failure to do so results in bankruptcies: individual or corporate.
Can conditional probablity be greater than 1?
No probability can be greater than 1. An event will either not happen (p=0) or it will happen (p=1) or something in between (p>0 and p<1).
What will happen to a whole number when multiplied by a fraction greater than 1?
It will increase.
Which expenditures was greater than the expenditure on health?
B) Income security
What two actions could you take if your expenditures were consistently greater than your income?
1). Reduce your rate of expenditure. 2). Increase your rate of income.
How does a budget deficit occur?
Basically when a country spends more money than the amount of money they are receiving when EXPENDITURE is greater than INCOME Eg. If I have 60 million but I spend 80 million, I have -20million This is a deficit
If the retained earnings account increases from the beginning of the year to the end of the year what will happen next?
Net income is greater than dividends
Where does cash at bank go in a income and expenditure account?
In an income and expenditure account, cash at bank is typically recorded under the "Income" section if it represents cash inflows from various sources, such as donations or revenue. However, it can also appear in the "Expenditure" section if it reflects cash outflows for expenses incurred. Ultimately, cash at bank serves as a measure of liquidity and financial position rather than a direct component of income or expenditure itself.
Definition of budget deficit?
If the revenue is less than the expenditure, a budget is said to be in deficit. A budget is divided into 3: a. Surplus budget b. Deficit budget c. Balanced budget Surplus : REVENUE greater than EXPENDITURE Deficit : REVENUE less than EXPENDITURE Balanced : REVENUE equals EXPENDITURE
To what does the grouping term finance refer?
The term finance refers to the amount of expenditure versus income a individual or a company has. A company usually hires a professional to look into the finance accounts and to make sure that the income is greater than expenditures, for otherwise the company would be making a loss.
If expenses are greater than income there is no what?
There is no profit.
Do you include bank balances in income and expenditure report?
No, bank balances are not included in an income and expenditure report. This report focuses on the revenues earned and expenses incurred over a specific period, providing a snapshot of financial performance. Bank balances represent the current cash position and are typically reflected in a balance sheet rather than an income and expenditure report.
Explain the difference between capital and revenue items of expenditure and income?
Capital expenditure are those the benefits of which will be taken for more than one fiscal year while for revenue expenditure benefits are only for one fiscal year.
What does negative net income means?
Negative income of any sort means more money is leaving than is entering in the measured range. Net income is 'in total' so it means reserves are decreasing (expenditure) rather than increasing (income)
If expenses are greater than income there's no?
There is no money.
