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What is net flow?

Net cash flow is the difference between income and expenditure.


What is the net flow?

Net cash flow is the difference between income and expenditure.


What is the net cash flow?

Net cash flow is the difference between income and expenditure.


What does gross domestic product measure in circular flow diagram?

flow of money, total income, total expenditure


Name the three phases in the circular flow of income?

The three phases of circular flow of income are; 1.production of goods and services 2.distribution or generation of income and 3.expenditure or disposition of income


Is credit income or expenditure?

Credit is neither an income or an expenditure. It becomes an expenditure when you use it. expenditure


What do you mean by income over expenditure or expenditure over income?

income over expenditure is profitexpenditure over income is loss


What are the injection into the circular flow of income?

injections into the circular flow of income are basically household consumers' net savings, net taxes and import expenditure. net savings from household consumers goes to the banks which in turn uses the money for investment expenditure(withdrawals) net taxes, goes to the govt which in turn uses it for government expenditure.(withdrawals) import expenditure goes abroad, and in turn uses it for export expenditure. Y= C + I + G + ( X-M)


Is it possible to have a negative net income and positive cash flow?

Yes and No. If the method of accounting followed is Mercantile, Yes. If the method of accounting followed is Cash System, No. In Mercantile method of Accounting, Negetive Income represents the excess of expenditure over income. In this method; Income and Expenditure considered are on accrual basis, i.e., income or expenditure is taken as such in the books of account; the moment a right to receive income or a liability to pay for expenditure has crytallised. The movement fo cash into the business or out of business is not the criteria. Therefore, inspite of a negative income in a particular year, a business may have a positive Cash flow on account of excess of cash flow arising out of previous years income, which is held as an asset in the form of Sundry Debtors, over the payments made in respect of previous years expenditure which is held as a liability in the form of Sundry Creditors on the balance sheet.


Why do cashiers use negative numbers?

They need to keep track of income and expenditure: that is, money coming in and money going out. Income is generally treated as a positive value and, since money going out is a flow in the opposite direction, it is given a negative sign so that income and expenditure can be combined.


What is the difference between income and expenditure incurred?

Inflow of money is income . Outflow of money is expenditure


What does the income-expenditure identity say about the relationship between income and expenditure?

The income-expenditure identity states that in an economy, total income equals total expenditure. This means that the amount of money earned by individuals and businesses is equal to the amount of money spent on goods and services.