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Business Finance and Arithmetic — Entrepreneurship STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEntrepreneurshipBusiness Finance and Arithmetic3 Marks
Question
Explain the following terms:
  1. Cash inflow.
  2. Cash outflow.
✓

Answer

  1. Cash inflow: It is defined as the movement of money into a business. Cash sales and collection from debtors are to prominent sources of cash inflow.
  2. Cash outflow: It is defined as the movement of money out of a business. Cash purchases and payment to creditors are prominent sources of cash outflow.

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