Practicing Success
Assertion: Cash Flow Statement shows how cash is expected to flow in and out of your business. |
Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A. Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A. Assertion (A) is true but Reasoning (R) is not correct. Assertion (A) is not true but Reasoning (R) is correct. |
Assertion (A) is not true but Reasoning (R) is correct. |
Cash Flow Projection shows how cash is expected to flow in and out of your business. For you, 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. Cash Flow statement and Cash Flow Projection are different terms. Cash Flow Projection shows how cash is expected to flow in and out of your business. For you, 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. |