5 Cash Flow VS Profit 42 Flashcards

1
Q

What is Revenue ?

A

Revenue is the value of sales made over a specified period: a day, a month or a year and only comes from one source ( Customers )
However cash inflow can come from many sources like: selling a old warehouse or taking out a bank loan

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2
Q

Differences between Cash flow and Profit ?

A

CASH FLOW
- Cash inflow can come from many sources like selling an old warehouse or taking out a bank loan

PROFIT
- Revenue can only come from source which is the customers

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3
Q

Differences between Costs and Cash outflows ?

A

CASH OUTFLOWS
- There are many reasons why a firm might pay out cash like paying dividends to its shareholders or repay a bank loan

COSTS
- E.g. Purchase from suppliers with credit

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