Question

The analysis of actual movement of money inflow and outflow in an organization is called ______ analysis.

Options

• Cash flow

• Trend analysis 

• Common size analysis

• None of these

Answer 1

The analysis of actual movement of money inflow and outflow in an organization is called Cash flow analysis.

Explanation:

It refers to the examination of actual cash movement into and out of a business. The flow of cash into the business is referred to as the cash inflow or positive cash flow, while the flow of cash out of the business is referred to as the cash outflow or negative cash flow. The net cash flow is the difference between the inflow and outflow of cash.