Question

Mackenzie is working on the yearly budget for her gift shop. She is very nervous because some months have been busier than others. She has also had some expenses that she wasn’t expecting but she hopes that the profits from some of the bigger sales she made will offset that. To her surprise, once she completes her budget, Mackenzie realized that her revenues and expenses for her gift shop were equal. Which term BEST describes Mackenzie’s budget?


deficit budget


balanced budget


depreciation


perishability

Answer 1

Balanced budget.

Explanation: a balanced budget is when revenues equal expenses. (A deficit budget means expenses exceed revenues; depreciation is loss of asset value; perishability refers to goods that spoil.)