For a small business,cash planning is relatively simple since cash and profits are the same.

Question

Quizplus · Accepted Answer

Cash and profits are not the same for a small business. Cash planning involves forecasting and managing the inflow and outflow of cash, including factors such as timing of payments and collections, unexpected expenses, and other cash reserves needed for operations. Profit, on the other hand, is the difference between revenue and expenses over a period of time and may not necessarily equate to available cash.

For a Small Business,cash Planning Is Relatively Simple Since Cash