Cash Flow - Define revenue

Wednesday, January 20, 2010

Cash Flow is a generic term used to describe a source of revenue expenditure, with the changes in an account at the time or the total amount of cash received and a company in a given period. Cash flows are essential to solvency and can be an account of events or events of the past should be in the future. It 'important to the survival of a society that determines whether enough money to pay creditors. Cash flow is the same base, so much can beby cash flows, such as loan income, deductions and deduction of depreciation and things can be added, such as loans for retirement and long-term assets.

The cash flow is a collective term for a variety of ideas depending on the context, to describe. In accounting, for example, is the statement of cash flow that is used to determine the ability of a company to invest more in creating a cash benefit. This statement is different from a profit and loss, since it applies only toThe actual cash on hand and not the amount due. Cash flow from three main sources: operating, investing and financing. Operational activities include cash in the normal commercial use. Investing activities include cash used in addition to, or purchased on investments or acquisitions. Financing activities are used or acquired for a cash payment, loans, shares or dividends.

The table of cash flows is one of the four major budget for a product CompanyFor billing purposes. There are several reasons for measuring cash flows, estimated as: the situation of a company to determine if there are liquidity problems, at a rate of return, and measured levels of income or a proposed business growth.

The products, cash flows, if a company or a person with their cash flow to fund their trip. This is an effective but can not eliminate the risk of interest rates. If the investment of positive cash flow from its market value isIncrease or decrease in inverse proportion to the interest rate of maturity in situ. An investment fund is that all cash for all cash flow is equal to the same time, and vice versa.

When the consideration is in the media, which often come with an operating cash flow, are leading to misleading figures as investment and financing are described above, is not recognized. "Companies often reclassified as financial assets and investment of the operating systemActivities on a more positive view of their number. This can be achieved: sales to get the money, not paying vendors for several weeks after the end of the period, the purchase of the leased equipment, etc.

You can see that money is a complex issue and the cash flow term that includes many different topics. The meaning of the word, is the specific context of environment, where it is based very much. His general sense, regardless of the concerns of paying in cash, donatedfor a certain period.

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