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what are key components of cash flow statement?Why cash is consisdered as king?


Why cash is not equal to profit? Business fails due to unavailability of cash while still showing profits, Explain the phenomenon?

538 day(s) ago

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MelonsO 		Cash Flows from Operating, Investing and Financing Activities.

Cash is important to the overall health of a business. A company could have a large amount of accounts receivables on its balance sheet, but the company could still be short on cash with which to make day to day operational purchases, including paying wages to workers for labor.

Profit is your revenues minus your expenses. In calculating both components of profit you are dealing with both cash and non-cash items.

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Question Title what are key components of cash flow statement?Why cash is consisdered as king?
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