A cash flow forecast provides managers with an estimate of the profit potential of different strategic plans.

Question

Quizplus · Accepted Answer

A cash flow forecast provides managers with an estimate of the cash inflows and outflows that are expected to occur over a certain period of time. It helps managers to identify potential cash shortages or surpluses and to make informed decisions about their financial operations. While profit potential may be a factor in strategic planning, cash flow forecasting is primarily focused on managing the cash flow of a business.

A Cash Flow Forecast Provides Managers with an Estimate of the Profit