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This book is filled with accounting lessons specially crafted for accounting students and aspiring accountants. Dive into the world of numbers and financial know-how as I guide you through essential concepts and practical insights. Whether you're ju...

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Cash Flow

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by edlyssegarcia

by edlyssegarcia

Cash Flow - refers to the movement of cash into or out of an account, a business or an investment.

*when cash inflow exceeds outflow, it is generally considered to be a sign of good financial health

THREE TYPES OF CASH FLOWS

1. Operational Cash Flows
- cash received or spent as a result of a company's business activities. Ex: Sales

2. Investment Cash Flows
- cash received or spent through investing activities. Ex: Investing on assets that can help increase net worth.

3. Financing Cash Flows
- cash received through debt or paid out as dept repayments. Ex: Issuing stocks

*Cash Flow Crunch - when the business experienced short on cash or unable to pay obligations.

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My classes will start next next week! I am freaking nervous with a mix of excitement. Wish me luck! Anyway, the information above was from Investopedia. Enjoy learning!!