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March 31, 2026, 02:15:01 am

Author Topic: Profit vs Cash  (Read 1693 times)  Share 

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asho1000

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Profit vs Cash
« on: September 12, 2013, 04:42:19 pm »
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What would be a good answer structure to use when explaining the difference between profit and cash?

vididid

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Re: Profit vs Cash
« Reply #1 on: September 13, 2013, 08:43:56 am »
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I'm not sure if this is 100% perfect but...
Under accrual accounting profit is determined by comparing revenues earned against expenses incurred for the period, however cash is determined by cash inflows less outflows, as some profit and cash items vary the difference between cash and profit may occur.
Then the examples from the Question to link.
Good luck tho, :)

Fluttershy

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Re: Profit vs Cash
« Reply #2 on: September 13, 2013, 09:05:14 am »
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I'm not sure if this is 100% perfect but...
Under accrual accounting profit is determined by comparing revenues earned against expenses incurred for the period, however cash is determined by cash inflows less outflows, as some profit and cash items vary the difference between cash and profit may occur.
Then the examples from the Question to link.
Good luck tho, :)

That's pretty much perfect. :)
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Kuroyuki

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Re: Profit vs Cash
« Reply #3 on: September 13, 2013, 10:27:09 am »
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I'm not sure if this is 100% perfect but...
Under accrual accounting profit is determined by comparing revenues earned against expenses incurred for the period, however cash is determined by cash inflows less outflows, as some profit and cash items vary the difference between cash and profit may occur.
Then the examples from the Question to link.
Good luck tho, :)
Yeah great answer. When I usually write mine, At the start I would say
"Cash and profit are different resources" and then what you said.
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asho1000

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Re: Profit vs Cash
« Reply #4 on: September 13, 2013, 06:44:18 pm »
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Thanks heaps guys  :D