Generally,firms that have cash flows with highly seasonal cash flows or cash flows that are just generally harder to forecast prepare cash budgets more frequently compared to firms with cash flows that are less seasonal and/or more predictable.

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This statement is true. Firms with cash flows that are harder to forecast, such as those with high seasonality, need to prepare cash budgets more frequently to ensure they have enough cash on hand to cover expenses during peak periods. In contrast, firms with more predictable cash flows may only need to prepare cash budgets on a quarterly or annual basis.

Generally,firms That Have Cash Flows with Highly Seasonal Cash Flows