Negative cash flow means more cash is going out of the business than coming in during a particular period. This does not always mean the business is loss-making, because it may be investing heavily or repaying debt, but it does signal pressure on liquidity. If negative cash flow continues for too long without proper planning, it can create funding problems.
Notes Receivable
Notes receivable are written promises from another party to pay a specified amount to the business at a future date, often with interest. They...
Notes Payable
Notes payable are written promises by a business to repay a specified amount at a future date, often with interest. They may arise from...
Normal Balance
Normal balance refers to the side, debit or credit, on which an account typically increases. For example, assets and expenses usually have a debit...
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