What is the term for cash remaining after cash outflows are deducted from cash inflows, indicating whether inflows exceed outflows?

What is the term for cash remaining after cash outflows are deducted from cash inflows, indicating whether inflows exceed outflows?

• A. Net Cash Flow
• B. Operating Cash Flow
• C. Gross Cash Flow
• D. Cash Balance

Answer: (A)

Net cash flow is the cash left after subtracting cash outflows from inflows over a period. It shows whether the business generated a surplus of cash and thus indicates liquidity. A positive result means inflows exceeded outflows, while a negative result means the opposite. This differs from operating cash flow, which focuses only on cash from core activities; gross cash flow would ignore the outflows, and cash balance is the amount of cash on hand at a point in time. In a cash flow statement, net cash flow represents the change in cash for the period, with ending cash equal to starting cash plus net cash flow.

Net cash flow is the cash left after subtracting cash outflows from inflows over a period. It shows whether the business generated a surplus of cash and thus indicates liquidity. A positive result means inflows exceeded outflows, while a negative result means the opposite. This differs from operating cash flow, which focuses only on cash from core activities; gross cash flow would ignore the outflows, and cash balance is the amount of cash on hand at a point in time. In a cash flow statement, net cash flow represents the change in cash for the period, with ending cash equal to starting cash plus net cash flow.