Net cash flow should be equated with net profit.

Name: Net cash flow should be equated with net profit.
Brand: Quizplus
Rating: 4.8 (35 reviews)

Question

Quizplus · Accepted Answer

Net cash flow and net profit are two different concepts. Net profit is the difference between total revenue and total expenses, while net cash flow is the difference between cash inflows and cash outflows during a specific period of time. Net profit includes non-cash items such as depreciation, whereas net cash flow only includes actual cash transactions.

Net Cash Flow Should Be Equated with Net Profit