A note from Sary

The Cash Flow Cycle describes how cash flows through a business. Think of your business's bank account like a bathtub. If you want the water in the bathtub to rise, you add more water and keep it from leaking out via the drain. The more water that flows in and the less that fows out, the higher the level of water in the tub. Revenues and expenses work the same way: your bank account is a Stock of cash that increases or decreases based on your income and payments.

Sary The Personal MBA, page 197 · November 3, 2023 Save to shelf
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