A budget surplus indicates that revenue exceeds expenditure, allowing for savings or debt reduction.
Questions & Step-by-step Solutions
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Q
Q: What does a budget surplus indicate? (2023)
Solution: A budget surplus indicates that revenue exceeds expenditure, allowing for savings or debt reduction.
Steps: 6
Step 1: Understand what a budget is. A budget is a plan that shows how much money is expected to come in (revenue) and how much will be spent (expenditure).
Step 2: Know what revenue means. Revenue is the money that comes in, like taxes or sales.
Step 3: Know what expenditure means. Expenditure is the money that is spent on things like services, salaries, and programs.
Step 4: Learn what a budget surplus is. A budget surplus happens when the revenue is greater than the expenditure.
Step 5: Realize what this means. A budget surplus means there is extra money left over after all expenses are paid.
Step 6: Understand the implications. This extra money can be used for savings or to pay off debt.
