Question

What are the different types of cash flows?

1) Inflow of Cash from Operating Activities
2) Outflow of Cash From Operating Activities
3) Inflow of Cash from Investing Activities
4) Outflow of Cash from Investing Activities
5) Inflow of Cash from Financing Activity
6) Outflow of Cash from Financing Activities

Answer 1

The types of cash flows include inflow and outflow from operating, investing, and financing activities.

Step-by-step explanation:

In the context of cash flows, there are six types:

1. Inflow of Cash from Operating Activities: This includes cash received from regular business operations, such as sales revenue or interest income.
2. Outflow of Cash from Operating Activities: This refers to cash paid out for operating expenses, such as salaries, rent, or utilities.
3. Inflow of Cash from Investing Activities: This involves cash generated from investments, such as selling assets or receiving dividends.
4. Outflow of Cash from Investing Activities: This represents cash spent on investments, such as purchasing assets or making loans.
5. Inflow of Cash from Financing Activities: This includes cash received from financing sources, such as issuing stocks or taking on loans.
6. Outflow of Cash from Financing Activities: This refers to cash paid out to finance the business, such as repurchasing stocks or repaying loans.

These different types of cash flows help track the movement of cash within a business.