Cash flow

Cash flow is a word that refers to the amount of cash being received and spent by a business during a defined period of time, sometimes joined to a specific project.

Measurement of cash flow can be used to assess the state or performance of a business or project.
To determine problems with liquidity. Being profitable does not essentially mean being liquid. A company can fail because of a lack of cash, even while profitable.
To generate project rate of returns. The time of cash flows into and out of projects are worn as inputs to financial models such as internal rate of return, and net present value.
To examine income or growth of a business when it is believed that accrual accounting concepts do not symbolize economic realities. Alternately, cash flow can be used to 'validate' the net income generated by accrual accounting.

Cash flow as a general term may be used differently depending on context, and certain cash flow definitions may be modified by analysts and users for their own uses. Common terms (with relatively standardized definitions) contain operating cash flow and free cash flow.