Taxes are NOT an important consideration in forecasting cash flows.

Question

Quizplus · Accepted Answer

Taxes can have a significant impact on cash flows, as they directly affect the amount of money that a business has available to finance its operations, investments, and distributions to shareholders. Taxes relate to several aspects of a company's operations, including income, expenses, capital expenditures, and financing costs. Therefore, understanding the tax implications of business decisions and properly forecasting tax payments and refunds is critical for estimating future cash flows.

Taxes Are NOT an Important Consideration in Forecasting Cash Flows