NET INCOME AND CASH FLOW

Net Income and Cash Flow

Net Income and Cash Flow

What are the major differences between net income and cash flow?

Net income and Cash flow are very different in the useful information they provide. Net income comprises of the operations of organization directed towards profit generation providing information regarding the expenses and revenues. Cash flows mainly focus on the flow of cash over a period portraying the way cash was used for purchases of various assets and what transactions generated cash. Furthermore, net income is produced based on accrual accounting while cash flows are cash based accounting. (Clyde, Weil ...