Family Budget Assertion and Reason Analysis

This question asks us to evaluate an assertion and a reason related to family budgets.

Analysis of Assertion (A)

Assertion (A): A family budget is a way of detailing future expenses under different headings.

This statement is correct. A budget is fundamentally a financial plan that outlines anticipated income and expenditures over a specific period. It involves breaking down expected costs into various categories or headings (like housing, food, transportation, etc.) to provide a clear picture of future spending.

Analysis of Reason (R)

Reason (R): It helps the family to live within the family’s income.

This statement is also correct. A primary objective of creating and following a family budget is to ensure that the total expenses do not exceed the available income. It acts as a crucial tool for financial management, enabling families to control spending and maintain financial stability.

Conclusion

Both Assertion (A) and Reason (R) are accurate statements about family budgeting. Furthermore, Reason (R) accurately explains the purpose and benefit of the activity described in Assertion (A). Creating a detailed budget (A) is the method used to achieve the goal of living within one's income (R).

Therefore, both statements are correct and the reason adequately explains the assertion.