Describe the difference between profit and cash.
What are the differences between cash from operating activities, cash from investing activities, and cash from financing activities?
Profit is defined as revenue less expenses. It may also be referred to as net income. Cash flow, on the other hand, refers to the inflows and outflows of cash for a particular business. The aim of nay organization or business is to make profit so as to meet the cost of production and the expenses involved inherently. It’s in this vein that despite the economic status, businesses and individual will tend to maximize on the profit. The following analysis is an extensive exploration of the existing difference between cash and profit.