CASH FLOW Definition

Bookmark and Share

CASH FLOW is earnings before depreciation and amortization. Cash flow is calculated as the difference between cash inflows and outflows. Cash flow can be derived from Operating Profit by adjusting for items which do not affect payments (e.g. depreciation) and items (e.g. changes in working capital) which affect payments but are not recorded in Operating Profit.

Learn new Accounting Terms

CAPITAL SURPLUS is an archaic term. See PREMIUM ON CAPITAL STOCK.

HOME EQUITY LOAN is a type of loan in which the borrower uses the equity in their home as collateral. These loans are sometimes useful to help finance a business, major home repairs, medical bills or college education.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.