The difference between profit & cash flow

IB Business Management: The difference between profit & cash flow

Cash flow refers to the movement of an organization’s cash inflows (cash received from the sale of goods and services) and cash outflows (used to pay for the costs of running the business).Cash flow is often used to measure the financial health of a business - and is an indicator of the financial health of the economy as a whole. This is because the comparison of cash inflows and cash outflows enables managers to see...

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