Liquidity planning forces a company to:

Question

Quizplus · Accepted Answer

Liquidity planning involves ensuring that a company has enough cash available to meet its financial obligations when they come due. Therefore, it is important to consider the timing of cash inflows and outflows to ensure that there is no shortfall. This may involve adjusting payment terms with customers and suppliers, but it does not necessarily involve offering longer credit periods or paying suppliers in advance. Increasing margins and profits may generate more cash, but it does not necessarily address the issue of liquidity.

Liquidity Planning Forces a Company To