What Is the Difference Between "Profit" and "Cash Flow

question 123

Multiple Choice

What is the difference between "profit" and "cash flow"?

• A) Profit refers to what is left after expenses have been subtracted from revenues, while cash flow refers to cash receipts and cash payments.
• B) A firm cannot make a profit unless its cash flow is positive.
• C) A firm can maximize its profit only at the expense of cash flow.
• D) A firm can maximize its cash flow only at the expense of its profit.
• E) There is no real difference between profit and cash flow.

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