What is the difference between the cash coming in and going out of the business called?

The difference between the cash coming into a business and the cash going out is termed "inflow-outflow." This concept is essential for understanding a company's cash flow, which reflects its financial health and operational efficiency. Cash inflow represents all the money received by the business, typically from sales, investments, or other revenue streams. Conversely, cash outflow encompasses all expenses and payments made by the business, including operating costs, salaries, and any other cash expenditures. By analyzing the inflow-outflow, businesses can assess whether they are generating sufficient revenue to cover their expenses, which is critical for sustainability and growth.

The other choices refer to different financial concepts. The closing balance pertains to the summary of cash available at the end of a specific period. The sale of assets refers to generating cash through selling property or equipment, which can be a cash inflow but is not specifically about ongoing cash flow management. Net current assets represent the difference between current assets and current liabilities but do not directly relate to the cash flow analysis. Understanding inflow-outflow is fundamental for effective financial management, as it directly impacts a business's ability to operate and thrive.