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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.
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What two quantities does a budget balance?
Income and expenditure.
What are ratios of equal quantities?
The ratio of two equal quantities is 1 .
An equation states that two quantities are what?
An equation states that the two quantities on each side of the equal sign are equal.
What is the name for multiply or divide two quantities by the same number?
If the quantities are related linearly, then the operation would mean SCALING Otherwise it is just operations on the two quantities by a constant
What is derived quantity?
Derived quantities are quantities which are made or found from other major quantities. There are two types of quantities. Ones are which are recognized throughout the world and using them other quantities are made.
