Multiple choice technology packaged enterprise solutions

______ is a planning tool that helps you anticipate the flow of cash in and out of your business, allowing you to project your cash needs and evaluate your company's liquidity position.

  1. A. Cash Inflow

  2. B. Cash Outflow

  3. C. Cash forecasting

  4. D. Cash prediction
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Cash forecasting is a planning tool that helps businesses anticipate cash inflows and outflows, allowing them to project future cash needs and assess liquidity. Unlike cash inflow (A) and cash outflow (B) which are individual components, cash forecasting encompasses the complete planning process. Cash prediction (D) is not the standard terminology used in financial management.

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