Synchronization of cash flows is an important cash management technique and effective synchronization can actually increase a firm's profitability.

Question

Quizplus · Accepted Answer

By synchronizing cash inflows and outflows, a firm can optimize the utilization of its financial resources, reduce the need for external financing and improve its earnings potential. As a result, effective cash flow synchronization can increase a firm's profitability.

Synchronization of Cash Flows Is an Important Cash Management Technique