Annual cash flow planning is especially difficult when a retailer ________.
A) uses quick response (QR) inventory planning
B) has high depreciation expense
C) buys merchandise on a consignment basis
D) has a highly seasonal business

Question

Quizplus · Accepted Answer

A highly seasonal business can make it challenging to predict and plan for cash flow throughout the year. There may be significant fluctuations in sales and expenses that need to be accounted for, making it difficult to create a reliable budget.

Annual Cash Flow Planning Is Especially Difficult When a Retailer