Cash planning is important because a company wants to

A) ensure that it has adequate cash available to meet maturing obligations
B) ensure the safeguarding of its available cash
C) forecast all available cash surpluses
D) prepare a cash budget so it can invest all cash

Question

William Campbell · Accepted Answer

Final Answer : A, Explanation :  Cash planning is primarily focused on ensuring that a company has enough cash on hand to meet any upcoming maturing obligations, such as paying bills or meeting payroll expenses. While safeguarding available cash and forecasting cash surpluses are also important, they are not the primary objective of cash planning. Additionally, preparing a cash budget is not the end goal of cash planning, but rather a tool used in the process.

Cash planning is important because a company wants to

A) ensure that it has adequate cash available to meet maturing obligations
B) ensure the safeguarding of its available cash
C) forecast all available cash surpluses
D) prepare a cash budget so it can invest all cash

Definitions

Learning Objectives

Learning Objectives

Related questions

Cash planning is important because a company wants toA) ensure that it has adequate cash available to meet maturing obligationsB) ensure the safeguarding of its available cashC) forecast all available cash surplusesD) prepare a cash budget so it can invest all cash

Definitions

Learning Objectives

Learning Objectives

Related questions

Cash planning is important because a company wants to

A) ensure that it has adequate cash available to meet maturing obligations
B) ensure the safeguarding of its available cash
C) forecast all available cash surpluses
D) prepare a cash budget so it can invest all cash