Question no. 1
Difference between profit and cash flow
(Jordan, Dolvin & Miller, 2015) defines profit as revenue after deducting the incurred expenses which is also called net income, where revenue includes total sales and any gains and cost & expenses includes cost of goods sold, salaries, maintenance, utilities insurance, rent, interest, transportation, depreciation. And cash flow is the difference between the actual cash that is received and the actual cash being utilized in the business. The cash may or may not be moved out from the business but profit is to ensure that business has made more earning than spending (Jordan, Dolvin & Miller, 2015).
In cash flow, revenues and expenses are recorded when the cash is actually trade off and…