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Explain the Difference between cash and profit
Cash flow statement shows all the cash in and cash out for the organisation for that period. It demonstrates the cash generating ability of the organisation. Income statement on the other hand shows profitability of the business during that period. Income statement is prepared using the accruals concept. This is where revenue and expenses are recognised in the period that they are incurred and not in the period the cash is received or paid. That's why you have a difference between profit andcash.
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Discuss how a business might limit agency problem between management and creditors
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Ivan is making several entries into the general journal at the restaurant where he serves as an accountant. The main difference between entries for routine business transactions an
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