Cash flow is the oldest form of accounting, predating historic cost by many centuries. It is extremely simple. All cash payments and all cash receipts are recorded in a book (now probably on a computer). The balance at the end of the week or month is the cash amount in hand, or in the bank. When the balance at the beginning of the month is compared with the balance at the end of the month, a cash surplus or a cash deficit for the month appears.
KeywordsCash Flow Business Performance Capital Expenditure Cash Payment Operating Profit
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