Is cash flow the same as revenue?

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Hartfield 0 Comments

Is the revenue that a company generated and the cash flow the same thing? How are these two different? Is there a possibility that a transaction can be recorded as revenue but not as cash flow?

1 Answer

score 0 · Answer 1 · 2012-12-02T19:34:15+00:00

No its not the same! Cash flow is either an inflow or an outflow. It can be either for operating activities, for investing activities or for financing activities and it needs to have been actually paid or received.

Revenue is recognized on an accrual basis. You can have revenue that is also a debtor (someone owes you money) which will not appear as a cash inflow.