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.