What is the correct difference between profit and cash flow?
Answer and explanation
Correct answer: लाभ आय और खर्च का अंतर है, नकदी प्रवाह धन के आने-जाने को दिखाता है
Profit is an accounting result obtained by comparing revenue with the relevant expenses for a period. Cash flow records the actual movement and timing of cash received and paid. Because credit sales or delayed payments are possible, a business may report profit while temporarily lacking cash to pay its bills.
Frequently asked questions
What is the correct answer to this question?
लाभ आय और खर्च का अंतर है, नकदी प्रवाह धन के आने-जाने को दिखाता है
Why is this the correct answer?
Profit is an accounting result obtained by comparing revenue with the relevant expenses for a period. Cash flow records the actual movement and timing of cash received and paid. Because credit sales or delayed payments are possible, a business may report profit while temporarily lacking cash to pay its bills.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Sources of Business Finance. Topic: Concept, nature and importance of business finance.
