Cash Flow Definition

Term Definition
Cash flow is the net amount of cash a business has acquired after expenses are subtracted.

Extended Definition
Cash flow constantly changes as money moves in and out of a business. It is measured by specifying a particular amount of time (e.g., a month). During that time, all income minus liabilities are a business’s cash flow. It is important to track your cash flow carefully because cash flow indicates the available amount of funds your business has to use.

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