cash flow

Financial and accounting concept. Cash flow results from three major groups of activities: operating activities, investing activities, and financing activities. A cash-flow statement differs from an income statement in reflecting actual cash on hand rather than money owed (accounts receivable). Its purpose is to throw light on management's use of its available financial resources and to help in evaluating a company's liquidity.

Find more information on cash flow. Upgrade to Britannica Online for more on cash flow.