Cash flow statements are used in conjunction with income statements in the financial plan section of the business plan because __________.
A) sales and receipts from customers may be irregular while expenses tend to be more consistent
B) they provide a financial picture of the business at one point in time
C) sales and receipts from customers tend to be consistent while expenses may be irregular
D) they cover a shorter time frame than income statements
E) None of the answers apply.

Question

Quizplus · Accepted Answer

Cash flow statements are used because sales and receipts can be irregular, while expenses are often more consistent, helping to manage cash flow effectively.

Cash Flow Statements Are Used in Conjunction with Income Statements