CASH FLOW AND PROFIT Flashcards
1
Q
What is profit
A
Profit: The excess amount of money made by a company when its total revenue exceeds its total costs
2
Q
What is cash flow
A
Cash flow: The movement of money in and out of a business over a period of time
3
Q
What is cash used for
A
On hand or in the bank - ready to spend
Essential for short term survival
A business with cash can pay its debts
4
Q
What is profit used for
A
Recorded on paper
Important for long term survival
A profitable business can run out of cash
5
Q
A
