Changes

Operating cash flow shows the cash flow that the business generated, or used, in the day to day operations of its business.  Key factors in generating operating cash flow are the control of [[accounts receivable]] and inventory levels.  If the operating cash flow<ref>typically overhead, [[payroll]], inventory replenishment, debt service, [[tax]]es etc.</ref> of a business is significantly different from its accounting income, the reason should be investigated.  While there are many legitimate reasons for the two to diverge, this simple test can often lead to the discovery of inappropriate [[accounting]].

Operating cash flow shows the cash flow that the business generated, or used, in the day to day operations of its business.  Key factors in generating operating cash flow are the control of [[accounts receivable]] and inventory levels.  If the operating cash flow<ref>typically overhead, [[payroll]], inventory replenishment, debt service, [[tax]]es etc.</ref> of a business is significantly different from its accounting income, the reason should be investigated.  While there are many legitimate reasons for the two to diverge, this simple test can often lead to the discovery of inappropriate [[accounting]].

==References==

==Notes==

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[[Category:Business]]

[[Category:Business]]

[[Category:Accounting]]

[[Category:Accounting]]