The timing of collections from sales made in past months is an important consideration for cash budgeting.

Question

Quizplus · Accepted Answer

The timing of collections is crucial for cash budgeting as it determines when the cash will be received and can be used for future expenses or investments. Delayed collections can create cash flow problems, while timely collections can improve cash flow and allow for better planning and budgeting.

The Timing of Collections from Sales Made in Past Months