a company may generate a high income in a particular period due to increased sales of its products. However, if customers have not yet paid for these products, the company's cash flow may not necessarily reflect this income until the payments are received. This discrepancy between income and cash flow can be seen when analyzing a company's financial statements.

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Thats absolutely correct Youve identified a key difference between income profit and cash flow and how this discrepancy can be revealed in financial s... View the full answer