MANAGEMENT

Detailed explanation-1: -If a business’s cash acquired exceeds its cash spent, it has a positive cash flow. In other words, positive cash flow means more cash is coming in than going out, which is essential for a business to sustain long-term growth.

Detailed explanation-2: -Cash flow can be positive or negative. Positive cash flow means a company has more money moving into it than out of it. Negative cash flow indicates a company has more money moving out of it than into it.

Detailed explanation-3: -While net income represents a company’s profits during the accounting period, cash flow represents the amount of cash that comes in or goes out of the business over the period. It’s possible to have a positive net income but have a negative cash flow.

Detailed explanation-4: -The balance you owe on your card will not count as a “cash outflow” until the debt is actually paid. After your calculations, if your closing balance adds up to be greater than your starting balance, your cash flow is positive. If it adds up to be lower, your cash flow is negative.