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Is it possible for a company to have a profit and a negative cash flow?
Wiki User
∙ 12y ago
No
Wiki User
∙ 12y ago
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Is it possible for the cash account to have credit balance?
It could be possible for the cash account to have a negative balance. This could occur if they wrote a check out for more money than they have. This would not be a good situation for a company!
Why does profit not equal cash flow?
Cash flow and profit are two different concepts. Profit includes non-cash items such as amounts owed by customers but not yet turned into cash (i.e., not yet paid by the customers). Profit is also net of debts currently owed by the company by not yet paid out in cash by the company (i.e. its accounts payable). Cash flow simply tracks the movement of cash (actual money) when received and paid out by a company, regardless of whether income was earned or expenses incurred.
What is the difference between profit and cash flows?
Profit mean that when a company sales turnover more so extra income that we get is profit. Cash flow means inflow & outflow of cash when there is any expenses or income earned.
Negative operating cash flow?
A negative cash flow can be used in the field of personal finance, as well as corporate. The company is probably struggling if they have a negative operating cash flow.
What do you mean by cash profit?
Cash profit means profit after tax plus depreciation.
What managerial assessments can you make about a company that has a profit and a negative cash flow in the same accounting period?
There are many managerial assessments you could make about a company that has a profit and a negative cash flow in the same accounting period. You could say that there is an error or that temperature changed dramatically for example.
What does a negative cash flow to creditors mean?
Cash flow is any money that comes into or goes out of a business. A negative cash flow would represent debt or a lack of profit for a company. This can be a red flag to creditors.
What is the cash flow of a company?
A company's cash flow is the amount of cash (or income) that goes into a business. Cash usually comes from a product or service that a company sells for profit.
Is it possible for the cash account to have credit balance?
It could be possible for the cash account to have a negative balance. This could occur if they wrote a check out for more money than they have. This would not be a good situation for a company!
What managerial assessments may you make about an organization that has a profit and negative cash flow in the same accounting period?
What managerial assessments may you make about an organization that has a profit and negative cash flow in the same accounting period?
Why does profit not equal cash flow?
Cash flow and profit are two different concepts. Profit includes non-cash items such as amounts owed by customers but not yet turned into cash (i.e., not yet paid by the customers). Profit is also net of debts currently owed by the company by not yet paid out in cash by the company (i.e. its accounts payable). Cash flow simply tracks the movement of cash (actual money) when received and paid out by a company, regardless of whether income was earned or expenses incurred.
What is the definition of a companys cash flow?
A company's cash flow is the amount of cash (or income) that goes into a business. Cash usually comes from a product or service that a company sells for profit.
What is the difference between profit and cash flows?
Profit mean that when a company sales turnover more so extra income that we get is profit. Cash flow means inflow & outflow of cash when there is any expenses or income earned.
Negative operating cash flow?
A negative cash flow can be used in the field of personal finance, as well as corporate. The company is probably struggling if they have a negative operating cash flow.
What is the difference between cash flow and cash?
Profit mean that when a company sales turnover more so extra income that we get is profit. Cash flow means inflow & outflow of cash when there is any expenses or income earned.
What do you mean by cash profit?
Cash profit means profit after tax plus depreciation.
Why is profit not always cash in accounting?
WHY IS PROFIT NOT ALWAYS CASH Profit is the excess of turnover over cost and expenses. Profit is not cash always because a company can have its financial statements to be exhibiting large amount as profit whiles it has nothing in its pocket. Cash on the other hand, is called a reality by me. It is a language which a small boy or girl understands unlike profit. Profit most of the time come about through the application of accounting concepts and tools. Because of this, an account prepared in Ghana which uses the IFRS will be different from the profit figure computed in India which uses the India GAAP.
