the 2 distinct terms profitability and cash flow which do yo

the 2 distinct terms profitability and cash flow which do you think is more important for business start up stage and why

Solution

cash flow is more important becasue cash flow consist of operating, financial and investing activities

1. It gives an idea about how much expenses are being done for running the business in the operations section

2. It gives an idea about the investment in the business in the investing section

3. In financing section , it will gives an idea about the notes payable or any amount to be recived

so for a start up this is more important so that they can have idea about the liquidity of the company and can plan accordingly