Which one of these statements is correct?
A)Firms prefer to receive cash later rather than sooner.
B)Corporate finance focuses on sales and profits.
C)Value creation depends solely on profits.
D)The amount of April sales must equal the amount of cash received by the firm during April.
E)The cash flows of a firm are generally uncertain.

Question

Quizplus · Accepted Answer

The cash flows of a firm are generally uncertain. This is because a myriad of factors can impact the inflows and outflows of cash within a business. These factors can include changes in the economy, competition, government regulations, and even weather events. As a result, firms need to carefully manage their cash flows to ensure that they have the liquidity necessary to meet their obligations and invest in new opportunities.

Which One of These Statements Is Correct