MANAGEMENT

Detailed explanation-1: -Cash flow refers to money that goes in and out. Having a positive cash flow means there’s more money coming in while a negative cash flow indicates a higher degree of spending. The latter isn’t necessarily a bad thing because it may mean that you’re investing your money in growth.

Detailed explanation-2: -Transactions that show a decrease in assets result in an increase in cash flow. Transactions that show an increase in liabilities result in an increase in cash flow. Transactions that show a decrease in liabilities result in a decrease in cash flow.

Detailed explanation-3: -The statement of cash flows (also referred to as the cash flow statement) is one of the three key financial statements. The cash flow statement reports the cash generated and spent during a specific period of time (e.g., a month, quarter, or year).

Detailed explanation-4: -The cash flow statement measures the performance of a company over a period of time.

Detailed explanation-5: -One of the simplest and most concerning explanations for a slowdown in cash flow is a decline in sales. This means that your total volume has dropped or you are selling products at lower price points to generate revenue. A reduction in sales often means that your business’s growth has slowed or peaked.