Accrued liabilities refer to amounts that a company owes but have not yet been paid. These liabilities are recognized in the company's financial statements even though the related cash outflows have not yet occurred. Accrued liabilities do not necessarily indicate a default or delinquency.
Cash flow refers to the movement of cash into and out of a business, reflecting the inflows and outflows of capital within a specified period. It is a critical indicator of a company's financial health and sustainability.
Cash outflows are the financial transactions where a business expends cash, which is essential for managing liquidity and business operations.
A consolidated cash-flow statement provides a comprehensive overview of cash inflows and outflows from a group of entities, combining individual cash-flow statements subject to various consolidation adjustments for accurate financial reporting.
Negative cash flow is a crucial financial metric that indicates an excess of cash outflows over cash inflows for a company during a specific period.
Net cash flow refers to the difference between the cash that enters (cash inflows) and exits (cash outflows) an organization during a specific financial period. It can either be positive, signifying a cash surplus, or negative, indicating a cash deficit.
A method of capital budgeting where the value of an investment is calculated by determining the total present value of all cash inflows and outflows minus the initial investment cost.
In a discounted cash flow (DCF) calculation, a standard cash flow pattern is characterized by an initial cash outflow followed by subsequent cash inflows, with no net cash outflows in subsequent years. This pattern, though useful in projections, is relatively rare in practice.
The Statement of Cash Flow is a financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources. It also includes all cash outflows that pay for business activities and investments during a given period. Essentially, it acts as a reconciliation of the opening and closing cash balance for a company.
