ECONOMICS

Detailed explanation-1: -Closing balance-the closing balance is the amount of money the business has at the end of the reporting period, usually the last day of the month: closing balance = net cash flow + opening balance.

Detailed explanation-2: -To calculate net cash flow, simply subtract the total cash outflow by the total cash inflow.

Detailed explanation-3: -Calculating the opening balance At the start of any business, the opening balance is zero. As the business moves forward the amount spent by the business and the amount owned by the business are added to that balance to create a closing balance at the end of the first designated accounting period.