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

Question

Quizplus · Accepted Answer

Projecting cash receipts is the best choice because it takes into account all the money that is actually coming into the business, not just sales or income. By subtracting expected expenses from projected cash receipts, a business can anticipate its cash flow and make informed decisions about spending and budgeting. Projecting gross receipts or sales may not accurately reflect the actual cash available to the business, while projecting net income ignores important cash outflows such as taxes and loan payments.

To Manage Cash Flow, You Should ________ and Then Subtract