→ %%Movement of money into and out of your pocket%%.
→ Cash flows IN and OUT.
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→^^When money flows IN^^to your pocket.
e.g. allowance, monthly salary, customer payments, return on investments
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→^^When money flows OUT^^ of your pocket
e.g. expenses for grocery, electricity bills, house repairs, tuition fees
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→Cash inflow - Cash outflow
e.g.
Cash Inflow = ₱10,000
Cash Outflow = ₱9,000
Net Cashflow = ₱1,000
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→ ^^A report^^ that shows how you make money and how you spend money.
→ It shows you if you spend more money than you actually make.
→ It helps manage the business run smoothly.
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→ Items that generate income — unless something is putting your money IN your pocket, (or wallet) it is not an Asset.
e.g. if you put your bicycle on rent and in return you get some money then your bike is an asset.
→ Something that takes money out of your pocket.
e.g. borrowing money, credit card balance, bills, house, cars
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→ Make your real Assets greater than your real Liabilities.
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