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Discuss and explain the difference between profit/loss and cash flow. How could a company have positive...

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Finance

Discuss and explain the difference between profit/loss and cashflow. How could a company have positive cash flow, but show a netloss at year end? What are some examples of industries and/orcompanies that might generate substantial cash flow, but could losemoney? Conversely, what are some examples of industries and/orcompanies that might generate very limited cash flow, but couldshow a profit at year end?

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3.7 Ratings (337 Votes)
Profit and loss is an analysis of all revenues and income earned by a company for a given period of time and expenses incurred by a company for that period It should be noted that the revenue could have accrued but not yet received and expenses also could have accrued but not yet paid In other words profit and loss statement shows revenues and different expenses for a company for a given period irrespective of the fact whether they are paid or    See Answer
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Discuss and explain the difference between profit/loss and cashflow. How could a company have positive cash flow, but show a netloss at year end? What are some examples of industries and/orcompanies that might generate substantial cash flow, but could losemoney? Conversely, what are some examples of industries and/orcompanies that might generate very limited cash flow, but couldshow a profit at year end?

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