One real danger in over-reliance on a cash budget is that it may lead to
A) inflexibility
B) pliability
C) exaggeration
D) errors

Question

Quizplus · Accepted Answer

Over-reliance on a cash budget may lead to inflexibility because it only focuses on cash inflows and outflows, neglecting the timing and variability of income and expenses. This lack of flexibility can prevent businesses from taking advantage of unexpected opportunities or adapting to changes in the market.

One Real Danger in Over-Reliance on a Cash Budget Is