Cash Flow

HideShow resource information
View mindmap
  • Cash Flow
    • Cash flow is the term used to describe the flow of money into a business and out of a business
    • The difference between 'Cash and Profit'
      • Cash and profit are linked, they are both to do with money, but they are NOT the same
        • All the cash IN is not profit
        • Cash IN from a bank loan is NOT profit
        • Cash IN from selling shares is NOT profit
        • Cash OUT to repay a bank loan is NOT a cost
      • The main difference between cash and profit is TIME
    • Importance of Cash Flow
      • To pay wages to ensure workers come to work
      • To pay suppliers to ensure delivery of stocks
      • To pay electricity and phone


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Finance resources »