What is the cash flow and his activities?

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Accepted Answer

Cash flow refers to the movement of cash in and out of a business. It includes operating, investing, and financing activities.

Cash flow is the net amount of cash and cash equivalents that a business receives and spends over a specific period of time.
Operating activities include cash inflows and outflows related to the day-to-day operations of the business, such as sales and expenses.
Investing activities include cash inflows and outflows related to the purchase and sale of long-term assets, such as property and equipment.
Financing activities include cash inflows and outflows related to the financing of the business, such as borrowing and repaying loans or issuing and buying back stock.
A positive cash flow indicates that a business is generating more cash than it is spending, while a negative cash flow indicates the opposite.
For example, if a business sells a product for $100 and incurs $50 in expenses, its operating cash flow would be $50.
Another example of cash flow is when a business takes out a loan to purchase new equipment. The loan proceeds would be a cash inflow, while the purchase of the equipment would be a cash outflow.

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