The actual cash received and paid out by a business over a given period. Cash flow should be distinguished from profit that is calculated on the accruals basis, which matches revenues and expenses rather than cash receipts and expenditure. If a company has negative cash flow, its liquid assets are decreasing. If a company has positive cash flow, its liquid assets are increasing, and the company will have money available to spend on expanding its operations, repaying debt, paying expenses and paying dividends to investors.