Cash planning and budgeting are important in government because the timing of cash inflows often does not necessarily coincide with the timing of cash outflows.

Question

Quizplus · Accepted Answer

Cash planning and budgeting help governments anticipate and prepare for cash shortfalls by ensuring that sufficient cash reserves are available to cover obligations when they come due. This is particularly important in instances where cash inflows are uncertain, delayed, or irregular. By accurately forecasting and managing cash flows, governments can maintain financial stability and avoid financial crises.

Cash Planning and Budgeting Are Important in Government Because the Timing