BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Operating cash flow A company whose sales exceed its operating expenses is cash flow positive.

Detailed explanation-2: -A cash surplus is the cash that exceeds the cash required for day-to-day operations. How you handle your cash surplus is just as important as the management of money into and out of your cash flow cycle. Two of the most common uses of extra cash are: Paying down your debt. Investing the cash surplus.

Detailed explanation-3: -So, is cash flow the same as profit? No, there are stark differences between the two metrics. Cash flow is the money that flows in and out of your business throughout a given period, while profit is whatever remains from your revenue after costs are deducted.

Detailed explanation-4: -Positive cash flow means that the net balance of the cash flow statement of a business over a given period is greater than zero. In other words, the cumulative effect of the total cash inflows and outflows over this timeframe is positive rather than negative, and so the business is growing its cash reserves.