Accounting terms

Dictionary of all accounting terms

What is Cash Flow?

Cash flow is the net amount of cash that flows in and out of a business.

Positive cash flow depicts an increase in company's liquid assets, enabling it to pay off debt, reinvest in the business, and provide a fiscal cushion for future financial "dry spells".

A strong, positive cash flow means that a business can invest more in itself without incurring any additional debt.

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