eHow launches Android app: Get the best of eHow on the go.
Summary: In accounting, positive cash flow is defined as the money left over from the difference of what cash comes in and goes back out for expenses. Understand positive cash flow and how it benefits businesses with ideas from a certified public account in this free video on accounting.
Shanis Windland has a Bachelors of Science degree in accounting from Central Washington University. She is a certified public accountant licensed in the state of Washington. Windland...read more
"In this clip we're going to talk about, how to define positive cash flow. I'm going to show you an example of both, positive cash flow and negative cash flow. On the left side we'll have an example of positive cash flow, on the right side we'll have an example of negative cash flow. At the top we have cash in minus cash out, and that gives us our total cash flow. In a positive cash flow situation, we would get cash in of a 1000 dollars, and cash would go out for 500 dollars, leaving us with 500 dollars of cash extra, so we made more cash during this period than what we spent, that's positive cash flow. On the second example, we only got cash in of 200 dollars, yet we had to pay out 500 dollars and therefore we had negative cash flow of 300 dollars. This simply means, that during that period we got in less cash than we had to pay out. And that's how you define cash flow."
eHow Article: How to Define Positive Cash Flow