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#cfa-level-1 #fra-introduction #reading-22-financial-statement-analysis-intro #study-session-7
Profit and cash flow are not equivalent.
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2. SCOPE OF FINANCIAL STATEMENT ANALYSIS
amination of performance can include an assessment of a company’s profitability (the ability to earn a profit from delivering goods and services) and its ability to generate positive cash flows (cash receipts in excess of cash disbursements). <span>Profit and cash flow are not equivalent. Profit (or loss) represents the difference between the prices at which goods or services are provided to customers and the expenses incurred to provide those goods and services. In addi


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