Synchronization of cash flows is an important cash management technique, as proper synchronization can reduce the required cash balance and increase a firm's profitability.

Question

Quizplus · Accepted Answer

Synchronization of cash flows helps in managing cash effectively by matching cash inflows and outflows, reducing the need for excess cash balances and resulting in increased profitability. Therefore, the statement is true.

Synchronization of Cash Flows Is an Important Cash Management Technique