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Accounting · Studypool

Accounting Question

Overview

Read the following article Cash Flow vs. ProfitLinks to an external site.

Answer the following questions:

1. What is cash flow?

2. What is profit?

3. In what situation will cash flow and profit be the same?

4. Which one is more important? Cash Flow or Profit?

5. If you had your own business, which one would you want more of? Net Positive Cash Flow or High Profits? Or Both? If both, how do you ensure your business can have both?