The more seasonal and uncertain a firm's cash flows, the greater the number of intervals and the shorter time intervals.

Question

Quizplus · Accepted Answer

This statement is true. If a firm's cash flows are more seasonal and uncertain, it is important to monitor cash inflows and outflows more frequently. This means breaking down the intervals into shorter time periods in order to better manage cash flow and ensure that the firm has the necessary funds available when needed.

The More Seasonal and Uncertain a Firm's Cash Flows, the Greater