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Does cash from operations equal profit?

Does cash from operations equal profit?

发布时间:2025-02-27 14:29:44
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答案:

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.  

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