Ans. Cash flow and profit are two different financial metrics. Profit refers to the excess of revenue over expenses during a specific period, as calculated using the accrual basis of accounting. It represents the increase in the overall wealth of a company. On the other hand, cash flow refers to the actual inflow and outflow of cash in a business. It represents the liquidity and availability of cash to meet immediate financial obligations. While profit is important for measuring the long-term sustainability of a business, cash flow is crucial for its short-term financial health and operational capabilities.