Question

What are the differences between inflow and outflow processes?

Answer 1

Cash inflow refers to a business or company's sources of money or income, while cash outflow refers to a business or company's expenses.

Answer 2

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CASH IN FLOW

• It means that cash is going into the company.
• E.g : Receipt of a bank loan, Interest on savings and Investments and Shareholder investments etc

CASH OUT FLOW

• It means cash is going out of the company.
• E.g: Purchase of stock, Raw materials or tools, Wages, Rents and Daily operating expenses, Dividend payments, Income tax etc