Cash flow

(CF).

The movement of cash in or out of a business, a project or a financial instrument in a particular period under review.

The cash flow for a given period may differ from the profit or loss for the same period because of:

1. Items in cash flow which are not part of profit or loss. For example capital expenditure or the collection of trade debtors arising and recognised in prior periods; and
2. Items in profit or loss which are not cash flows, such as depreciation, amortisation, or making accruals.

Cash flow is sometimes written cashflow.

See also

• Accrual
• Amortisation
• Cash
• Cash conversion cycle
• CertICM
• Depreciation
• Free cash flow
• Incremental cash flows
• Profit
• Reconciliation

Other links

Students: Cash in, The Treasurer