Final answer:
The realization (timing) of income can be useful to a firm for various reasons, such as managing taxes and cash flow.
Step-by-step explanation:
The statement is true. The realization (timing) of income can be useful to a firm in various ways.
Timing income can impact a firm's financial statements and taxes. For example, if a firm wants to reduce its taxable income, it may choose to delay the recognition of revenue to the following year. In certain situations, a firm may find it more beneficial to cease operations temporarily or permanently, rather than continue producing output. This could be due to various factors such as high operational costs, changes in market demand, or strategic pivots.
Additionally, timing income can also be important for budgeting and cash flow management. By carefully managing when income is realized, a firm can ensure that it has enough cash on hand to cover its expenses and pursue new opportunities.