Profit and cash can be the same thing. You can have profit on the books and not have the cash because it can be tied up in various processes. Your actual disposable income is the most important.
because it is important than cash flows
Cash is as liquid as it gets.
cash is life blood of business. so it becomes verry important to ensure liquidity that is to have cash at firm's disposal so that as and when cash is required in business activities it is readily available. this also gives a feeling of safety. when cash is readily available a firm can make each and every decision regarding manufacturing, processes, payments etc. easily without a feeling of cash crunch.these all things togethere takes a firm to the path of profit since ultimate aim of everything is to make profit.i think there is 3 reasons for the firm to get more safety and liquidity cash :- transaction balances : the transaction motive involves the use of cash to pay for planned corporate expenses such as supplies, payrolls, and taxes.-compensating balances for banks : for services provided rather than paying directly for those services.- precautionary needs: assume management wants cash for emergency purposes when cash inflows are less than projected.
It's not called anything. If by profit you mean revenues. Then it is called a loss.
Absolutely not. Anyone offering to charge more than the ordinary price for accepting a credit card should be reported to the credit company immediately. On the other hand, offering a "cash discount" is not considered the same thing, as it is no longer the "ordinary price", and it is the merchant who pays the difference (in lost profit).
cash is money in general but a profit if a little more than what you normally make
Yes, without the people there is no profit.
because it is important than cash flows
It's a good question since the status is more about taxes than profit. Non profit's do not generally pay taxes on the organization's profit.
Probably because cash is fungible (mutually interchangeable and inventory is not.
1. Why are we interested in cash flows rather than accounting profits in determining the value of an asset?
Profit, costs, and expenses are important within any business' profit and loss statements. The connection is that anything that is more than the costs and expenses of a product or service offered by a business is profit.
They are not related. Let me briefly explain: You could sell a million dollars and make zero profit. The best way for you to look at this...is that profit is different than cash.
Cash is often regarded as more important than inventories because it provides liquidity and flexibility for a business. Cash allows companies to meet immediate obligations, invest in opportunities, and navigate unexpected expenses. While inventories can be valuable assets, they are not as easily converted to cash and can incur holding costs, making cash a critical resource for operational stability and growth.
It is more important in the long term to do what is strategically right than what is immediately profitable. Doing what is immediately profitable can often lead to profit issues later.
a breat club with good coulture. they are more than profit organisation. the club make more profit than any english club.
Profit is the difference between cost and proceeds. If the proceeds are more than the cost then one is said to be in profit. Having motivation to achieve proceeds more than the cost is known as profit motive.