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Q » Explain the difference between cash flow and profit.

Steven

06 Dec, 2025

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A » Cash flow refers to the actual inflow and outflow of cash within a business during a specific period, while profit is the financial gain after subtracting expenses from revenue. A company can show a profit on its income statement yet experience negative cash flow if its income isn't immediately converted into cash, impacting its ability to meet short-term obligations.

Michael

06 Dec, 2025

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A »Cash flow refers to the movement of money in and out of a business, while profit is the difference between revenue and expenses. A company can be profitable but still have poor cash flow if it has tied up funds in accounts receivable or inventory, highlighting the importance of managing both for financial health.

David

06 Dec, 2025

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