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

2803 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

In what way does the seasonality affect operations of a busness?


Explain one advantage and one disadvanatge of using temporary staff. (6 marks)


Analyse how delayering might affect the level of profit of a business


how many users are invoked in business meeting?


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:

© 2026 by IXL Learning