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cash flow |
Also found in: Dictionary/thesaurus, Financial, Acronyms, Encyclopedia, Wikipedia, Hutchinson | 0.02 sec. |
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cash flow, n the reported net income of a corporation plus amounts charged off for depreciation, depletion, amortization, and extraordinary charges to reserves, which are bookkeeping deductions not paid out in actual dollars and cents. A measurement tool used in recent years to offer a better indication of the ability of a company to pay dividends and finance expansion from self-generated cash than the conventional reported net income figure. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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Mumford, author of The Financial Numbers Game: Detecting Creative Accounting Practices, was clearly on to something when he wrote that "profit is an opinion, but cash flow is a fact. Cash Flow Statement: Preparation, Presentation, and Use (Text--No. Understanding cash flow leads to better business decisions. |
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