A firm whose sales volume is expanding rapidly need not be concerned about managing its cash flow.

Question

Quizplus · Accepted Answer

As sales volume expands rapidly, it may result in increased expenses and working capital requirements. Therefore, managing cash flow becomes crucial to ensure that the firm has enough cash to meet its operational and financial obligations. Failure to manage cash flow can lead to liquidity issues and even insolvency.

A Firm Whose Sales Volume Is Expanding Rapidly Need Not