Issues that require an entity to manage its cash include:

Question

Quizplus · Accepted Answer

All of these issues require cash management. Not having enough cash can result in missed opportunities, late payments, and even bankruptcy. A company needs to have sufficient cash to meet its financial obligations such as payments to vendors, salaries, and taxes. The timing of cash flows is important because a company may have inflows and outflows of cash at different times, and they need to manage their cash accordingly to avoid any cash shortfalls.

Issues That Require an Entity to Manage Its Cash Include