Cash flow, namely cash flow, is an important concept in modern financial management. Refers to the total amount of cash inflow and outflow generated by certain economic activities (including business activities, investment activities, financing activities and non-recurring projects) in a certain accounting period, that is, the inflow and outflow of cash and cash equivalents in a certain period.

For example, selling goods, providing services, selling fixed assets, recovering investment, borrowing funds, etc. , forming the cash inflow of enterprises; Purchase of goods, acceptance of labor services, purchase and construction of fixed assets, cash investment, repayment of debts, etc. , forming the cash outflow of the enterprise.

Matters needing attention in cash flow

If the discount of bank acceptance bills does not meet the conditions for the termination of financial assets, the cash obtained from the discount of bills shall be recognized as loans in the balance sheet, and the cash inflow shall be classified as the cash flow of financing activities in the cash flow statement.

If the discount of bank acceptance bills meets the conditions for derecognition of financial assets, the relevant cash inflows are classified as cash flows generated from operating activities; The discount of bank acceptance bills does not meet the conditions for derecognition of financial assets, and subsequent bills need to be repaid when they expire. When bills receivable and loans are terminated, cash receipts and payments are not involved, and the cash flow statement cannot be fictitious. When the company purchases raw materials by endorsement of bank acceptance bills, it shall be handled in accordance with these measures.