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What is the difference between Cash Profit and Net Profit? |
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Answer» Profit may also be referred to as net income, and can be defined as revenue less expenses. Cash flow, on the other hand, refers to the money coming in and the money going out for a particular business. It is more complicated than income. net profit means money left after paying all expenses .here all expense means cash expenses and non cash expenses also , when we calculate net profit we consider depreciation , this dep. is non cash item which is not spend in cash .but cash profit means money left after paying all cash expenses . in this profit we never consider non cash item , thanks |
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