Question: Find more about that topic with additional research and share with the class. This article explains what Cash Flow is and how it is important

Find more about that topic with additional research and share with the class. This article explains what Cash Flow is and how it is important for a business owner to know how their cash is flowed in and out of different accounts and why they are important. Cash flow is money coming into your business or going out. Cash inflow is the money you collect, while the definition of cash outflow is the money you're spending. Net cash flow is the cash you have left after all the outflows. There are 3 types of cash flow: operating, investing, and financing. There are three ways to classify cash flow: 1. Financing indicates how you finance your business and the money flow between the company and its owners, investors, or creditors. This is often the equity, debt, or payments made as dividends. 2. Investing is the investment-related part of your business. A financially strong company is continuously buying and selling assets. 3. Operating cash flow is the net amount a company generates. For a business to succeed and grow, this should remain positive. In QuickBooks you can use different reports and projections to get a clear look at your current and future

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!