Cash planning and budgeting are important in government because the timing of cash inflows often do not coincide with the timing of cash outflows.

Question

Quizplus · Accepted Answer

Cash receipts from tax sources are often concentrated in a few months of the fiscal year whereas expenditures related to services, particularly payrolls, may be relatively level throughout the year. Cash planning and budgeting permit efficient short-term borrowing when needed and repayment of short-term debt and/or temporary investment during periods of excess cash balances.

Cash Planning and Budgeting Are Important in Government Because the Timing