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Cash inflow Businesses sell products and services to generate income. The catch-all phrase for it is 'sales'. It doesn't matter how you make a sale, the end result is a transfer of wealth from someone else to your business.
Cash outflow In order to produce and sell goods and services, your business uses raw materials and labour, which must be paid for. In other words, you have to spend money to make money.
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What is cash inflow and outflow?
Exactly what it sounds like. A cash inflow means that cash is going into the company, and a cash outflow means cash is going out of the company.
What is the difference between a cost and a benefit?
Cost is the cash outflow of some activity to achieve higher cash inflow from some activity. Cash outflow is called the cost while cash inflow is called the benefit from specific activity. If cash inflow is morethan cash outflow then it is said that activity has more benefit then it's cost.
What is the disadvantage of regular outflow?
With regular outflow, there would be shortage of capital,causing hidrance to regular running of business. With adequate inflow, regular outflow is always unwelcome and disadvantagous to business, for reason cited above.
How is net exports and net capital outflow related?
Net exports is the total exports minus the total imports. If this is positive then, there is net capital inflow. If this is negative, it means there is net capital outflow.
What is the balance of payments equilibrium?
Point in trade with other countries that exists when: 1) Imports = exports. 2) Capital inflow = capital outflow.
What is inflow and outflow?
Exactly what it sounds like. A cash inflow means that cash is going into the company, and a cash outflow means cash is going out of the company.
When is a river in a state of equilibrium?
When the outflow and inflow are equal.
Is account payable an inflow or outflow or neither?
The recording of an account payable does not create any current effect on cash flow, so it is neither creates an inflow or outflow.
How is net cash flow calculated?
Net cash flow is calculated as follows Net cash inflow (outflow) from operating activities Net cash inflow (outflow) from investing activities Net cash inflow (outflow) from financing activities Total cash inflow(outflow) Add: Opening cash balance Closing cash balance Closing cash balance must be equal to cash balance in balance sheet.
What is the between a cost and a benefit?
Cost is the cash outflow of some activity to achieve higher cash inflow from some activity. Cash outflow is called the cost while cash inflow is called the benefit from specific activity. If cash inflow is morethan cash outflow then it is said that activity has more benefit then it's cost.
What is cash inflow and outflow?
Exactly what it sounds like. A cash inflow means that cash is going into the company, and a cash outflow means cash is going out of the company.
Are proceeds from debt issuance cash inflow or cash outflow?
Are proceeds from debt issuance cash inflow or cash outflo
Is a decrease in notes payable a cash inflow?
No, it is a cash outflow. To reduce a note payable, you need to pay it off, and it is therefore a cash outflow.
Proceeds from issuance of common or preferred stock considered cash inflow or outflow?
yes
What is the difference between a cost and a benefit?
Cost is the cash outflow of some activity to achieve higher cash inflow from some activity. Cash outflow is called the cost while cash inflow is called the benefit from specific activity. If cash inflow is morethan cash outflow then it is said that activity has more benefit then it's cost.
What is the difference between income and expenditure incurred?
Inflow of money is income . Outflow of money is expenditure
What is the disadvantage of regular outflow?
With regular outflow, there would be shortage of capital,causing hidrance to regular running of business. With adequate inflow, regular outflow is always unwelcome and disadvantagous to business, for reason cited above.
