Question on: SS2 Accounting - Computation of Profits From Two Balance Sheets Showing The Opening And Closing Capital

What is the difference between accounting profit and cash profit?

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A

Accounting profit considers cash inflows and outflows during the year, while cash profit does not.

B

Cash profit considers cash inflows and outflows during the year while accounting profit does not.

C

There is no difference between accounting profit and cash profit.

D

None of the above

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Correct Option: B

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