The transfer or movement of money into and out of an organization; inflows mainly come from sales revenue whereas outflows are for items of expenditure.

• A. Cash Flow
• B. Cash
• C. Assets
• D. Sources of Finance

Answer: (A)

Cash flow is the movement of money into and out of a business over a period. Inflows come from sales revenue when customers pay, and outflows cover items of expenditure like wages, rent, and supplier payments. This flow shows how money actually moves through the company, which is essential for meeting short-term obligations and planning investments. The term describes timing and liquidity, not the amount of money held at a moment (that’s cash), nor the resources owned (assets), nor the origins of funds (sources of finance).