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    BUS 2204 Written Assignment Unit 4

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    Feven Mezemir
    The document discusses different types of budgets and their uses. It explains that a comprehensive budget has two main components: an operating budget that shows recurring expenses and income for short-term goals, and a capital budget that shows one-time expenses for long-term goals like purchasing durable goods. A specialized budget focuses on a specific revenue or expense category and creates goals around that. Specialized budgets are ultimately incorporated into the overall comprehensive budget as part of total financial planning.

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    BUS 2204 Written Assignment Unit 4

    Uploaded by

    Feven Mezemir
    51 views3 pages
    The document discusses different types of budgets and their uses. It explains that a comprehensive budget has two main components: an operating budget that shows recurring expenses and income for short-term goals, and a capital budget that shows one-time expenses for long-term goals like purchasing durable goods. A specialized budget focuses on a specific revenue or expense category and creates goals around that. Specialized budgets are ultimately incorporated into the overall comprehensive budget as part of total financial planning.

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    The document discusses different types of budgets and their uses. It explains that a comprehensive budget has two main components: an operating budget that shows recurring expenses and income for short-term goals, and a capital budget that shows one-time expenses for long-term goals like purchasing durable goods. A specialized budget focuses on a specific revenue or expense category and creates goals around that. Specialized budgets are ultimately incorporated into the overall comprehensive budget as part of total financial planning.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    51 views3 pages

    BUS 2204 Written Assignment Unit 4

    Uploaded by

    Feven Mezemir
    The document discusses different types of budgets and their uses. It explains that a comprehensive budget has two main components: an operating budget that shows recurring expenses and income for short-term goals, and a capital budget that shows one-time expenses for long-term goals like purchasing durable goods. A specialized budget focuses on a specific revenue or expense category and creates goals around that. Specialized budgets are ultimately incorporated into the overall comprehensive budget as part of total financial planning.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Written Assignment Unit 4

    University of the People

    BUS 2204 Personal Finance

    Kerri Schaffert, Instructor

    September 28, 2022


    Since business operations are so complex, coordinating them takes a lot of work. The budget

    makes it easier for management to compare performance to the plan they created. An

    organization or individual can use a variety of financial tools to assist with financial decisions.

    These financial tools help us handle our finances more effectively by serving as a guide. The

    budgeting process, financial statements, risk assessment, the time value of money,

    microeconomic indicators, and/or personal factors are the tools in this chapter that can help me

    make wise financial decisions (Siegel & Yacht, 2009).

    Walther (2012) claims that "comprehensive budgeting involves coordination and

    interconnection of various components." A comprehensive budget has two components which

    include an operating budget and a capital budget. An operating budget shows recurrent revenue

    and expenses, mostly living costs and income from wages, dividends, and interest, typically

    associated with short-term financial goals. Because interest is earned regularly when money is

    deposited into a savings account, it is an example of recurring income. A capital budget on the

    other hand is a budget that shows nonrecurring events which are associated with long-term

    financial goals. A capital budget contains one-time expenses such as capital expenditures and

    purchases of durable goods. An excellent illustration of a capital budget is buying a car or a

    refrigerator because these items are occasionally purchased or needed. The components'

    definitions make their differences and intended uses very apparent.

    In conclusion, a specialized budget is prepared by focusing on a certain revenue and spending

    and creating specific goals that must be attained. Since specialized budgets are a component of

    overall financial activity, they are ultimately included in comprehensive budgets. It often

    provides a more detailed reflection of a single action, such as the results of owning and caring for

    a certain asset or engaging in a specific activity. In other words, the relationship between the
    specialized budgets and comprehensive budgets is that the specialized budget is incorporated into

    the comprehensive budget as a part of the overall financial activity.

    Word Count: 407

    References

    Siegal, R. & Yacht, C. (2009). Personal Finance. Saylor Foundation. Licensed under Creative

    Commons CC BY-NC-SA 3.0.

    https://my.uopeople.edu/pluginfile.php/1599368/mod_page/content/20/TEXT%20Personal

    %20Finance.compressed.pdf

    Walther, L.M. (2012). Principles of Accounting. Logan, UT: Utah State University. Available at

    http://www.principlesofaccounting.com/

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