Question

Which should NOT be included in a comprehensive budget?

Non-recurring expenses
Recurring income
Non-recurring income
Recurring expenses

Answer 1

Solution:

Comprehensive budget refers to the budget, which takes into consideration elements of financial life which comprises of nonrecurring expenditures and recurring expenses and income. Nonrecurring expenditures are the expenses which are undertaken for capital improvement such as purchase of durable items such as a washing machine or refrigerator. Recurring expenditure comprises of investment deposit, regular savings, repayment of loan and living expenses. Recurring income on the other hand comprises of income from dividends, interest, wages or salary. Therefore, it can be concluded that Non recurring income is not a part of the comprehensive budget.

Hence, the correct answer is “Non-Recurring income”