Net cash flow
A) is the difference between cash inflows and outflows.
B) is the difference between revenues and expenses.
C) is the same as net profit.
D) has little impact on a firm's financial well-being.

Question

Quizplus · Accepted Answer

Net cash flow is the difference between cash inflows and outflows, which is an important measure of a company's financial health. It shows how much cash a company is generating or using up over a specific period of time, and can help determine if the company has enough cash to cover its operating expenses and invest in future growth. Revenues, expenses, and net profit are all important factors in analyzing a company's financial performance, but do not directly measure its cash flow.

Net Cash Flow