The number and type of intervals in the cash budget depend on the nature of the business. The more seasonal and uncertain a firm's cash flows, the greater the number of intervals and the shorter the time intervals.

Question

Quizplus · Accepted Answer

The statement is correct. A cash budget for a business with more seasonal and uncertain cash flows will have more intervals and shorter time intervals to accurately project and manage cash flows.

The Number and Type of Intervals in the Cash Budget