Cash flow is defined as:

• A. Movement of money in and out of your business
• B. A snapshot of your business financials
• C. A list of assets
• D. Profit margin

Answer: (A)

Cash flow measures the movement of money in and out of a business. It tracks when cash actually enters from sales and other sources and when cash leaves for expenses, debt, or purchases. This focus on real cash availability is what liquidity is about and it distinguishes cash flow from accounting profits, which can include non‑cash items and timing differences. The other descriptions don’t fit as well: a snapshot of your financials could refer to a broader view like a balance sheet or income statement, a list of assets targets what the business owns, and profit margin is a profitability measure that doesn’t capture the timing of cash receipts and payments.