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

2260 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

What is Customer Service and why is it important for a business?


How do I get high marks in essay questions?


If Incomes increase what would happen to demand for bus rides (an inferior good) in the market?


Explain the advantages of being a franchisee


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences