Question

Assessing and predicting cash flows mean the same thing? True or False True False

Answer 1

The given statement is True.

Supporting explanations:

Assessing of cash flows means estimating the cash flows for the future period and at the same time, predicting the cash flows also mean estimating the cash flows for future period. Generally, this estimating of cash flows (assessing or predicting) is done by preparing cash budget which mainly involves estimated total cash receipts and cash disbursements (cash payments) during a particular period of time to know how much cash should be maintained to meet the expectations.

Therefore, assessing or predicting the cash flows have same meaning, hence, the given statement is True.