Which of the following is a key benefit of understanding cash flow for a business?

Understanding cash flow is crucial for effective budgeting and financial planning because it provides insights into the timing and amount of cash that a business has available to meet its obligations and invest in growth opportunities. By tracking cash flow, a business can assess its financial health and make informed decisions about spending, investments, and saving. This knowledge enables managers to plan for future expenses, anticipate shortfalls, and avoid liquidity crises that could hinder operations. Thus, mastering cash flow helps ensure that the business can operate smoothly and achieve its financial goals.