M9-S4 - Cash is no longer king
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Cash is no longer king:
- Cash flows are transformed
- Cash inflows become revenues
- Cash outflows become expenses
- Realization principle (prudence)
- Matching principle
- Accounting profit
- Accrual accounting versus cash accounting
As a result, you can have revenues in a certain period without having cash inflows, you can have cash outflows without having costs (expenses)
