When a company analyzes its short-term financing needs,it typically examines cash flows at:
A)monthly intervals.
B)yearly intervals.
C)quarterly intervals.
D)weekly intervals.

Question

Quizplus · Accepted Answer

Analyzing cash flows on a quarterly basis allows companies to review their financial position regularly without overly frequent checks that may not provide meaningful insights. This time frame is long enough for cash flow fluctuations to become apparent and short enough for a company to take corrective actions if necessary. Monthly intervals may be too frequent for short-term analysis, while yearly intervals may not give enough detail for companies to make informed decisions. Weekly intervals may provide too much detail, which could lead to unnecessary stress and activity. Therefore, quarterly intervals are the best choice for analyzing short-term financing needs.

When a Company Analyzes Its Short-Term Financing Needs,it Typically Examines