Question

preparing a cash flow forecast helps a company to examine and manage its _______.

○ accounting practices

○ profitability

○ float times

○ bottom line

Explanation:

A cash flow forecast focuses on the timing of cash inflows and outflows. Float times refer to the time between when a check is issued and when it clears (affecting cash availability). Accounting practices are about recording methods, profitability is about income vs costs (more about profit and loss), and bottom line is net income. Cash flow forecast helps manage float times as it deals with cash timing.

Answer:

C. float times (assuming options are labeled A - D with A: accounting practices, B: profitability, C: float times, D: bottom line)