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How are cash flow and profit related?

Asked 3 years ago

What's the differences and similarities between cash flow vs. profit related?

Jolina Regin

Thursday, November 11, 2021

Cashflow means the amount of cash moving in and out of the business for a specific period while profit is the amount a business gets after subtracting expenses from the revenue.

Both are important for businesses cash flow shows whether the business can pay its creditors and run day-to-day operations while profit shows the success of a business for that period.

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