What Is a Revenue Stream?
Income and expenditure flow is an indicator in the cash flow statement, which refers to the balance (net income or net expenditure) of inflows (income) minus outflows (expenses) of cash and cash equivalents within a certain period, which reflects the company's Increases or net decreases in cash and cash equivalents. According to the different types of production and operation activities of an enterprise, the income and expenditure flows can be divided into income and expenditure flows from operating activities, income and expenditure flows from investment activities, and income and expenditure flows from financing activities.
Income expenditure flow
Right!
- Chinese name
- Income expenditure flow
- Attributes
- An indicator in the cash flow statement
- Reflection
- Net increase during the period
- Points for
- Income flow from operating activities
- Income and expenditure flow is an indicator in the cash flow statement, which refers to the balance (net income or net expenditure) of inflows (income) minus outflows (expenses) of cash and cash equivalents within a certain period, which reflects the company's Increases or net decreases in cash and cash equivalents. According to the different types of production and operation activities of an enterprise, the income and expenditure flows can be divided into income and expenditure flows from operating activities, income and expenditure flows from investment activities, and income and expenditure flows from financing activities.
- In terms of personal daily life, for example, a total of 1,200 yuan in cash at the beginning of a month, 1,500 yuan in salary income this month, 800 yuan in living expenses, and 1,000 yuan in government bonds, so that by the end of the month There is also cash 1 200 + 1 500-800-1 000 = 900 yuan, and the monthly income and expenditure flow is equal to 900-1 200 = -300 yuan, which is a cash reduction of 300 yuan at the end of the month compared to the beginning of the month. At the same time, assets increased by 700 yuan (900 + 1 000-1 200).
- Due to the inherent limitations of the profit and loss information reflected in the income statement, for example, the realized profits do not necessarily have cash, and there is still the possibility that bad cash will occur if cash is not received. In addition, the income statement is subject to artificial adjustment. Therefore, through the preparation of the cash flow statement, to provide users of accounting statements with more comprehensive, more useful and more authentic information.
- To give a simple example, an enterprise realized a profit of 10 million yuan, and its income and expenditure flowed 3 million yuan. It can be seen that although the enterprise has achieved a profit of 10 million yuan, the net cash inflow is only 3 million yuan. The possibilities include: First, a large amount of accounts receivable has not been recovered, so that the company has no more cash. Increase; the second is that the company repays a large amount of debt or purchases a large amount of materials without using it, resulting in cash not increasing with the realization of profits, but it may create conditions for the next period of cash increase; The bank loan was returned; etc. Through the analysis of the cash flow statement, profit statement, and balance sheet, you can get a clearer picture of the company's operating activities in the current period, and more comprehensively evaluate the quality of the company's operating activities in the current period, which will help users of the statements to make relevant decision making.