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.

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Answered by Sarah P. Business Studies tutor

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