Managers can evaluate their business' operating performance by comparing the information from the operating activities section of the business' cash flow statement with the projected operating cash flow in the cash budget.

Question

Quizplus · Accepted Answer

Comparing actual cash flows from operating activities with projected operating cash flows in the cash budget allows managers to assess the accuracy of their forecasts and the operating performance of their business, identifying areas of strength and opportunities for improvement.

Managers Can Evaluate Their Business' Operating Performance by Comparing the Information