Cash Flow for Dummies
noun
pronunciation: kæʃ_floʊWhat does Cash Flow really mean?
Hey there! So, "cash flow" is a term that's used in the world of finance and business. It's a way of talking about the money that is coming into and going out of a business or a person's bank account.
Imagine your bank account is like a river. If the river is flowing smoothly, that means money is coming in regularly, like when you get paid for doing a job or when someone buys something from your business. But if the river gets blocked or dries up, that means there's not a lot of money coming in, and that can be a problem.
So, when we talk about "cash flow," we're looking at how much money is coming in, how much is going out for things like bills and expenses, and whether there's enough left over for the business or person to keep running smoothly. It's kind of like checking the health of your bank account to make sure everything is going okay.
In a business, having good cash flow means they have enough money to pay their employees, buy supplies, and take care of any unexpected costs that might come up. On the other hand, if a business has poor cash flow, it might struggle to stay afloat and keep the lights on.
So, in a nutshell, "cash flow" is all about the movement of money in and out of a business or a person's bank account, and it's super important for making sure everything stays on track financially. I hope that helps explain it a bit better for you!
Imagine your bank account is like a river. If the river is flowing smoothly, that means money is coming in regularly, like when you get paid for doing a job or when someone buys something from your business. But if the river gets blocked or dries up, that means there's not a lot of money coming in, and that can be a problem.
So, when we talk about "cash flow," we're looking at how much money is coming in, how much is going out for things like bills and expenses, and whether there's enough left over for the business or person to keep running smoothly. It's kind of like checking the health of your bank account to make sure everything is going okay.
In a business, having good cash flow means they have enough money to pay their employees, buy supplies, and take care of any unexpected costs that might come up. On the other hand, if a business has poor cash flow, it might struggle to stay afloat and keep the lights on.
So, in a nutshell, "cash flow" is all about the movement of money in and out of a business or a person's bank account, and it's super important for making sure everything stays on track financially. I hope that helps explain it a bit better for you!
Revised and Fact checked by Michael Davis on 2023-11-13 20:21:36
Cash Flow In a sentece
Learn how to use Cash Flow inside a sentece
- When you work at a job, you receive money for your work. This is called cash flow.
- If you sell something for more money than you paid for it, you have a positive cash flow.
- If you spend more money than you earn, you have a negative cash flow.
- A business needs to manage its cash flow carefully to make sure it has enough money to pay its bills and employees.
- A budget helps you plan your cash flow by knowing how much money you'll receive and spend each month.
Cash Flow Hypernyms
Words that are more generic than the original word.