Business A-Level
cash flow versus profit
What cash flow versus profit means in Business A-Level, as defined for AQA.
Definition of cash flow versus profit
Check what you remember
Read the wording for your board, then hide it and explain cash flow versus profit in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Cutting costs and selling more may improve profit over several months yet do nothing for cash this month, because those extra sales would still be made on credit.
Topics that use cash flow versus profit
Related terms
- constraints on small firms
- credit control
- debt factoring
- margins and return on capital employed
- price elasticity of demand
- profit versus profitability
- supplier bargaining power
- conflict between cash and profit
Using cash flow versus profit in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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