What expenses are reflected on the P&L and not in your cash flow analysis?

Question

Question

Answer 1

Answer #1

Cash flow shows only those expenses which are paid in cash.

But profit and loss shows expenses which are paid as well as outstanding.

Cash flow follows cash basis and profit and loss follows accrual concept.

For example depreciation is a non cash expenditure still it is shown in profit and loss account

Answer 2

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