13.1 Account Cash Flow

Account cash flows consist of inflows and outflows that occur from a particular account on a periodic basis under contractual terms. The account can be either an asset or a liability. For example, a bank could disburse a bullet loan where interest payments occur periodically, on say a quarterly basis, while the principal is repaid as a single bullet payment at the maturity of the loan. Also, a bank could disburse a loan on EMI basis where both principal and interest is repaid in equal monthly installments across the life of the loan.