Economics · Accountancy

Which of the following is a primary reason why management should strictly manage and control cash flows?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Early settlement discounts might be obtained from suppliers for prompt payment.✓
2It eliminates the need for maintaining accounts receivable records entirely.
3Non-payment by customers automatically prevents future tax obligations.
4The timing of cash receipts from customers directly affects recognized sales revenue.

Correct answer

Early settlement discounts might be obtained from suppliers for prompt payment.

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