What are the two main purposes of managing cash flows in cash planning?

Practice question from IC 38 Mock Test 9 — bank. The correct answer is highlighted below with a full explanation.

Options

To manage income and expenses flow, and to maintain a surplus for capital investment

Correct answer
B

To manage income and expenses flow, and to prepare a budget
C

To maintain a reserve of liquid assets for unexpected needs, and to reduce variable expenses
D

To maintain a surplus for capital investment and to prepare a budget

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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