Inflow/(outflow): Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson m (Add category.) |
imported>Doug Williamson (Links ordering.) |
||
| (One intermediate revision by the same user not shown) | |||
| Line 33: | Line 33: | ||
== See also == | == See also == | ||
*[[B/(W)]] | *[[B/(W)]] | ||
*[[Corporate finance]] | *[[Corporate finance]] | ||
*[[FP&A]] | * [[Financial planning and analysis]] (FP&A) | ||
*[[Model]] | |||
*[[Mostly positive]] | |||
*[[Sign convention]] | |||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
Latest revision as of 13:27, 16 March 2023
Inflow / (outflow) sign convention under which:
- Positive numbers are used for cash inflows, items of income and assets.
- Negative numbers are used for cash outflows, expenditure and other costs, and liabilities.
Negative numbers are often shown (in brackets) for emphasis.
For example:
Cash inflows +9
- Cash outflows (5)
= Net inflow +4
Taking another example:
Cash inflows +9
- Cash outflows (15)
= Net outflow (6)
The inflow/(outflow) convention is used for many types of financial reporting, but it is not universal.
A widely used alternative convention is the 'mostly positive' sign convention.
