Net Cash-Flow
Money actually entering minus leaving business.
Formula
Net Cash Flow = Total Cash Inflows − Total Cash Outflows
Real World
A new Deliveroo restaurant partner may be profitable on paper but have negative net cash flow in month one because customers pay after a 30-day settlement period while supplier invoices are due immediately.
Exam Focus
Never confuse net cash flow with profit — state explicitly that cash flow is actual money movement, not accounting recognition of revenue.
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