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Watch-it-Wednesday: What is Cash Flow?

 

Cash flow is a “revenue or expense stream that changes a cash account over a given period. Cash inflows usually arise from one of three activities - financing, operations or investing - although this also occurs as a result of donations or gifts in the case of personal finance. Cash outflows result from expenses or investments. This holds true for both business and personal finance.

[Also an] accounting statement called the ‘statement of cash flows’, which shows the amount of cash generated and used by a company in a given period. It is calculated by adding noncash charges (such as depreciation) to net income after taxes. Cash flow can be attributed to a specific project, or to a business as a whole. Cash flow can be used as an indication of a company's financial strength.” –Investopedia

Cash Flow | Photo credit: fearlessdollar.com

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