Cash Flow
- Created by: Cara MacSherry
- Created on: 05-11-13 21:32
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- Cash Flow
- Cash flow is the term used to describe the flow of money into a business and out of a business
- The difference between 'Cash and Profit'
- Cash and profit are linked, they are both to do with money, but they are NOT the same
- All the cash IN is not profit
- Cash IN from a bank loan is NOT profit
- Cash IN from selling shares is NOT profit
- Cash OUT to repay a bank loan is NOT a cost
- The main difference between cash and profit is TIME
- Cash and profit are linked, they are both to do with money, but they are NOT the same
- Importance of Cash Flow
- To pay wages to ensure workers come to work
- To pay suppliers to ensure delivery of stocks
- To pay electricity and phone
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