Accounting Profit vs. Cash Flow

timer Asked: Aug 14th, 2014
account_balance_wallet $5

Question Description

A firm's profit does not necessarily equal its cash flow. Explain why using at least 2 Generally Accepted Accounting Principles (GAAP) to support your answer. Also discuss if earning a profit or generating cash flow is more important for a firm.

Tutor Answer

School: Purdue University

Good stuff. Would use again.

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