Which statement about budget categories is true?

Which statement about budget categories is true?

• A. A group in a budget for a specific type of expense.
• B. A plan to borrow money.
• C. A bank account used for spending.
• D. A credit card feature.

Answer: (A)

Budget categories are groups that organize a budget by type of expense, like housing, food, or transportation. This setup helps you plan how much to spend in each area and see where you might need to cut back or adjust. The other statements describe things that aren’t categories: borrowing money is about debt, a bank account is an account, and a credit card feature is a card function. So the description of a group in a budget for a specific type of expense is the right choice.

Budget categories are groups that organize a budget by type of expense, like housing, food, or transportation. This setup helps you plan how much to spend in each area and see where you might need to cut back or adjust. The other statements describe things that aren’t categories: borrowing money is about debt, a bank account is an account, and a credit card feature is a card function. So the description of a group in a budget for a specific type of expense is the right choice.