Cash Flow - What is cash flow and why is it important?

Q: What is cash flow and why is it important?

What Is Cash Flow? Cash flow is the inflow and outflow of money from a business. It is necessary for daily operations, taxes, purchasing inventory, and paying employees and operating costs. Positive cash flow indicates that a company's liquid assets are increasing.

Answer

How Does Cash Flow Work? A company's cash flow is its incoming and outgoing cash. Paying staff and operational expenses, buying merchandise, paying taxes, and running day-to-day operations all require it. An increase in a company's liquid assets is shown by a positive cash flow.

Cash Flow - What is cash flow and why is it important?

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