Question

which best describes the purpose of recording past income and spending in a budget?
to know the historic cost of goods
to serve as the basis for future planning
to learn why having savings is important
to learn why expenditures are likely to increase

Explanation:

• "To know the historic cost of goods" focuses on goods' past costs, not budget's purpose for planning.
• "To serve as the basis for future planning" matches: recording past income/spending in a budget helps analyze trends, allocate resources, and plan future finances.
• "To learn why having savings is important" is about savings' importance, not budget's planning role.
• "To learn why expenditures are likely to increase" is about expenditure trends, not budget's core planning purpose.

Answer:

B. to serve as the basis for future planning