to guard against the uncertainty of the timing of receipts and payments

Question

Quizplus · Accepted Answer

To guard against the uncertainty of the timing of receipts and payments, a business needs to maintain a cash balance. This is because there may be times when the business has more receipts than payments, and other times when the business has more payments than receipts. By maintaining a cash balance, the business can ensure that it has enough cash on hand to meet its obligations.

To Guard Against the Uncertainty of the Timing of Receipts