The total amount of money being transferred into and out of a business or personal bank account. Positive cash flow means more money is coming in than going out, while negative cash flow indicates the opposite.
Cash Flow
Definition
The total amount of money being transferred into and out of a business or personal bank account. Positive cash flow means more money is coming in than going out, while negative cash flow indicates the opposite.
Example
John reviewed his monthly cash flow and realized that while his income was stable, his entertainment expenses were causing a slight negative flow, prompting him to adjust his spending.
Key Points
- 1Movement of money in and out.
- 2Positive cash flow is essential for financial health.
- 3Analyzed over a specific period (e.g., monthly).
- 4Crucial for personal and business financial planning.
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