What is a cash flow in the accounting business course?

For accounting purposes, cash flows are presented in the statement of cash flows. This statement shows the amount of cash generated and used by a company in a given period, calculated by adding non-cash charges (such as depreciation) to net income after taxes. Cash flow can be attributed to a specific project, or to a business as a whole. Cash flow can be used as an indication of a company's financial strength.

The cash flow statement is presented either indirectly or directly. Only governmental and not-for-profit entities financial statements require the indirect and the direct method. All others only require the direct method. Therefore, most schools do not teach the indirect method.

The statement is broken up into three sections: Cash flows from operating activities, cash flows from investing and cash flows from financing.

In accounting and in life... Cash Flow is "money coming in measured against money going out".