What is the difference between profit and cash flow?

Cash flow is all the money flowing in and out of a business. This is calculated at the exact time actual cash enters or leaves a business bank account or till. Profit is calcuated by calculating ALL transactions flowing in and out of the business (either at that point in some point in the future e.f rent) Profit is therefore the surplus after all expenses are deducted from revenue.

SP
Answered by Sarah P. Business Studies tutor

2546 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

What is a benefit of market segmentation?


What is one advantage of a limited company


What are 'shareholder ratios' and how do you work them out?


Explain the importance of Outsourcing to an an international firm.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning