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What is the simple meaning of cash flow?

Answer and explanation

Correct answer: Money coming into and going out of a business

Cash flow means the movement of cash into and out of a business during a period. Cash may come from sales, loans, or owner contributions, while it may go out for purchases, wages, rent, utilities, and other payments. Thus, option A is correct. Decoration, product colour, and customer age are not meanings of cash flow, although some related business activities may require payment.

Related tags

Cash-FlowFinanceBusiness-BasicsConceptNature And Importance Of Business FinanceConcept Nature And Importance Of Business FinanceSources Of Business FinanceBusiness StudiesClass 11 Mcq

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