Does cash from operations equal profit?
Does cash from operations equal profit?
发布时间:2025-02-27 14:29:44
Does cash from operations equal profit?
In the short term, cash flow from operations does not equal profit because profit is calculated using the accrual method of accounting. This means that transactions are recorded when they occur. Cash flow from operations is prepared on the cash basis or when the cash movement takes place. The indirect method, which is included in a note to the account, reconciles the two.