What is the difference between cash flow and the profit of a business?

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Ever mixed up cash flow with profit? The two concepts are similar but not synonymous. The cash flow definition is more concerned with how cash is actually moving in and out of a business, whereas profit is determined from accounting principles which may incorporate non-cash items. These movements are given in detail in a cash flow statement in the following section: A statement of cash flows is useful in understanding the causes of a profitable company having a cash shortage. 

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