accounting grade 12 case study term 3 topic:budget&debtors
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Answer:
What is budgeting? It is an important planning and forecasting process to help you manage your money by balancing your expenses with your income.
Budgeting is simply balancing your expenses with your income. If they don't balance and you spend
more than you make, you will have a problem. Many people don't realize that they spend more
than they earn and slowly sink deeper into debt every year
Why is Budgeting so Important?
Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you. Following a budget or spending plan will also keep you out of debt or help you work your way out of debt if you are currently in debt.
debtors:-Definition: A debtor is a person or organization that owes money to another person or organization.
When the counterpart of this debt arrangement is a bank, the debtor is more often referred to as a borrower.