Final answer:
The statement is true. Determining the exact amount of monthly receipts and disbursements can be challenging when projecting cash flows.
Step-by-step explanation:
The statement that "In projecting cash flows the most difficult problem is in determining the exact amount of monthly receipts & disbursements" is True.
When projecting cash flows, it can be challenging to accurately determine the precise amount of money that will be received and disbursed on a monthly basis. This is because cash flows are often influenced by various factors, such as seasonal variations, economic conditions, and business operations.
For example, in the case of a retail business, the amount of monthly receipts can fluctuate based on the demand for products and sales cycles. Similarly, the amount of monthly disbursements can vary due to expenses like rent, utilities, and inventory purchases.