Description
Cash Flow vs. Net Income
Cash flow from operations in a business is different than net income from operations in the same business. Discuss the difference in these two measurements of company activity. Which is most important to the business and why? What are the consequences a company may face if either of these is ignored?
Please discuss your ideas, thoughts, and comments.
Explanation & Answer
Attached.
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Running head: CASH FLOW VS. NET INCOME
Cash Flow Vs. Net Income
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CASH FLOW VS. NET INCOME
Unit 3 discussion 1
Cash Flow vs. Net Income
Cash flow refers to the increase or decrease of money in an organization. It is the amount of
money that is generated or that which is consumed in the organization for a given period. On the
other hand, net income is the organization’s income after cost of goods, the expenses, the taxes,
and the interests have been deducted. Cash Flow ...
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