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Can somebody explains the difference of cash flow and accounting profit?


Can somebody tells me the Difference of cash flow and accounting profit ?

Thank you.

538 day(s) ago

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DougCPA 		Cash flow is actual money.

Accounting profit is an imaginary number that can be moved around by changing inventory methods, accrual vs. cash, depreciation, etc.
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Posted 538 days ago

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MDcpa05 		If you are speaking in regards to business; Cash flow could be described as the total amount of funds available to operate your business. This could include funds provided through bank lending as well as sales or additional revenue created by service fees, operational fess etc...
Acounting profit would be the reported amount of "Profit" after calcualting your books against your sales and operational expenses. Once you have figured in all associated cost to a service or product, paid the overhead bills, insurances and such; the remainding revenue would be reported as profit.

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