What is the difference between profit and cash flow?

Cash flow is all the money flowing in and out of a business. This is calculated at the exact time actual cash enters or leaves a business bank account or till. Profit is calcuated by calculating ALL transactions flowing in and out of the business (either at that point in some point in the future e.f rent) Profit is therefore the surplus after all expenses are deducted from revenue.

SP
Answered by Sarah P. Business Studies tutor

2780 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

What is meant by the term 'marketing'?


How should I prepare for my AS business exam


I really don't understand what the types of inflation are.


How should I structure my Business Studies exam answers? Could I get an example please?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning