The timing of cash flows is critical to a company's ability to maintain adequate liquidity so that it can pay its bills on time.

Question

Quizplus · Accepted Answer

The statement is true. A company's ability to pay its bills on time depends on having adequate liquidity, which in turn depends on the timing of cash flows. In other words, if a company's cash inflows are not aligned with its cash outflows, it may struggle to meet its obligations.

The Timing of Cash Flows Is Critical to a Company's