Accrual accounting is required under GAAP, and in this course you have learned to account for transactions on an accrual basis, as if cash flows are not that important. In reality, they are of great importance! You might have heard the phrase cash is king, which often refers to the fact that companies need positive cash flow from their operations in order to remain in business. Managers spend considerable time and effort creating a cash budget for future accounting periods, planning the timing of cash inflows and outflows so that cash is available when needed. In our personal lives too, we need to pay attention to our income and expenses on a cash basis. In this discussion, share at least one example or story that indicates the importance of cash flows, for companies or for individuals.

PLEASE HELP ME ANSWER THIS DISCUSSION TOPIC.