To manage cash flow, you should ________ and then subtract expenses you expect to incur.

Question

Quizplus · Accepted Answer

Projecting cash receipts is necessary to estimate how much money will be coming into the business. Once this is done, subtracting projected expenses gives a clearer picture of the business' cash flow. Projecting net income or gross sales does not necessarily give a reliable estimate of cash flow as they do not take into account expenses. Projecting gross receipts or gross liabilities also do not provide useful information for managing cash flow.

To Manage Cash Flow, You Should ________ and Then Subtract