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When selling assets or he company sold the products or delivering the services on account more than liablites 2- assets revaluation have accrued revenues
Profit and cash-flow are related financial measurements in accounting but they are not directly linked. Profit is a measure of an company's ongoing sustainability while cash-flow is a measure of the company's ability to pay its bills as they become due. See, the cash-flow for a particular period is the closing cash balance arrived at after deducting the cash-out (paid) from the cash-in (received). Profit on the other hand, is the amount that remains after deducting from the revenue earned, the expenses incurred in earning that revenue.
Not necessary as the cash would have been invested in Fixed Assets which would yield profit in future. If a business grows with profit , cash will not a have much issue.
A company can have a profit but not have cash because profit is computed using revenues and expenses, which are different from the company's cash receipts and cash disbursements. In other words, there is a difference between revenues and receipts. There is also a difference between expenses and expenditures.
Thanks for invitation,
When the organization is selling on credit and the receivables are not collected or not due yet.
There is a difference between revenues and receipts. There is also a difference between expenses and expenditures.A company can have a profit but not have cash because profit is computed using revenues and expenses, which are different from the company's cash receipts and cash disbursements.
In the following situations a profitable company might not have cash.
1- when
1- the company sold the products or delivering the services on account
2- assets revaluation
Thank you for the invitation, liquidity or cash is the result of revenue operations may be regular or Received actually, but there revenues are recorded only has not been collected yet and this affects the cash available to the company, or that the company's obligations rotating frequent dramatically, and also the profit inflating stocks last duration value which is deducted from the direct cost of operations resulting in a gain of placebo or notebook profit
Thank you for your kindness invitation.
I agree with all previous answers.
Regards
when the majority of the sales be on credit
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