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Biology
Trent Moreno
15 October, 06:23
9. What is cash flow?
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Amari Lewis
15 October, 07:03
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Cash flow is the real or virtual action of money. Cash flow in finance and accounting refers to the capital inflows and outflows of specific economic units in order to achieve a specific purpose within a certain period of time. In accounting, in addition to measuring cash flow, it is also necessary to make a reasonable estimate of future cash flows. The basic concept of cash flow is the cash that the company can use immediately for a certain period of time. However, cash inflows and cash outflows from economic activities usually do not match in time, and the amount and timing of cash flows from economic activities are uncertain, so business operators must be committed to managing the gap in cash flow. If the cash flow is insufficient, it may soon cause the shortage of funds in the company, forcing it to close down.
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Mayra Murray
15 October, 09:23
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Cash flow is the net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's liquid assets are increasing, enabling it to settle debts, reinvest in its business, return money to shareholders, pay expenses and provide a buffer against future financial challenges.
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