what is the difference between cash flow and profit and
loss account?
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Answer / rohit
cash flow shows only trasactions relating to cash wheather
of capital or revenue nature whereas p&l a/c shows all the
revenue transactions of current year wheather or not
realised in cash or not.
| Is This Answer Correct ? | 28 Yes | 8 No |
Answer / ananth
cash flow is a statement in which we enters the infow and
outflow of the cash transactions in the business. the cash
flow statement will be prepared to know liquidity position
of the business
profit & loss account is an account where the all indirect
expenses and the incomes of the business are entered and at
last we will get the net profit or net loss of the
business.
| Is This Answer Correct ? | 12 Yes | 1 No |
Answer / shaik mohammed
Cash flow statement show only the cash items that an
organisation incurrs during the business periond and non
cash expenses like depriciation, bad debts, provision for
bad etc. dont have place in cash flow.
Where as profit and loss account considers both cash as wel
as non cash expenses.
| Is This Answer Correct ? | 17 Yes | 8 No |
Answer / azam khan
The cashflow statment shows the exact position of liquidity
in a firm that how much cash is incorporated in business
and how much is expensed over various heads during fiscal
year.
while profit&loss a/c show that wheather the business is
going in prfit or loss .
| Is This Answer Correct ? | 11 Yes | 4 No |
Answer / mohammedghousemohiuddin
CASH FLOW
only teh actual cash received or spent will be entered.
credit transactions will be ignored.
PROFIT AND LOSS A/c
It is more of accrual basis, all transactions that are
happening in that accounting period will be entered
| Is This Answer Correct ? | 6 Yes | 2 No |
Answer / arun
Cash flow consists of only cash transactions both received and payments made of capital and revenue in nature whereas P&L a/c shows the expenses and incomes of revenue in nature, it includes accrued expenses and incomes as to find the profit or loss for that accounting year.
| Is This Answer Correct ? | 2 Yes | 0 No |
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