Assertion (A): A budget allows us to foresee if we have enough money to fulfil our needs. Reason (R): Budget acts as an intelligent guide to spending.

Question

KollegeApply · Accepted Answer

Both A and R are true and R is the correct explanation of A. Explanation: A budget projects expected income and expenses so you can tell whether you’ll have enough money to meet needs; by doing this it guides how you should allocate and prioritise spending,i.e., it “acts as an intelligent guide to spending,” which is why you can foresee sufficiency.

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