Business Accounting and Bookkeeping
Financial Statements

What is cash-flow and what affects it?

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Answered 2007-08-29 14:49:27

Cash flow is money coming in and money going out. If you arent getting any cash to flow then you dont have a cash flow. Say you had a great job making a lot of money.... you had money coming in because you were working.... well your money was also going out because you were buying things you wanted. Then you lost your great job. Your cash flow stopped.... you now have to budget your money. You still have a cash flow as long as you are spending that money. Once you run out of money you no longer have a cash flow.

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