Inflow/(outflow): Difference between revisions
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Revision as of 14:16, 8 October 2020
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.
