Lester is watching the bank balance decline throughout the month and hopes his company won't run out of money before it runs out of month.Lester is concerned about the net cash flow,which is:
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)is the same as working capital plus inventory.

Question

Quizplus · Accepted Answer

Net cash flow is the difference between cash inflows and outflows. Revenues and expenses are not necessarily measured in terms of cash, and net profit takes into account non-cash items such as depreciation. Working capital and inventory are also not necessarily the same as net cash flow.

Lester Is Watching the Bank Balance Decline Throughout the Month