Which of the following statement (s) is/are NOT true about the 'cash flow projection'?
Answer & explanation
Correct answer: option 3
Cash Flow Projection shows how cash is expected to flow in and out of a business. It's an important tool for cash management, letting you know when your outflows are too high or when you might want to arrange short term investment to deal with a cash surplus. As part of your business plan, a Cash Flow Projection will give you a much better idea of how much capital investment your business idea needs.