04-15-2005, 06:46 AM
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cash is very important. if u donot have it, ur liquidity shall decline. u will become insolvent, despite holding assets of millions of dollars.
profit is a relative thing, rather thn an absolute thing. it is a steate of mind. an apparent loss may cause a future benefits. simple example, all the money invested in marketing campaigns, n promotions n adverticing etc r categorized as "marketing expenses". but the benefits generated due to it r larger sales volumes, more income, improved brand image etc etc etc. these r profits also. but resulted from an apparant loss (cash out flows).
the important thing is the present value of future cash inflows (financial mgmt approach) rather than profits by subtracting expenses from revenues (accounting approach).
well mates, feel free to raise ur views abt it.
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FARHAN
live, n let live ...
cash is very important. if u donot have it, ur liquidity shall decline. u will become insolvent, despite holding assets of millions of dollars.
profit is a relative thing, rather thn an absolute thing. it is a steate of mind. an apparent loss may cause a future benefits. simple example, all the money invested in marketing campaigns, n promotions n adverticing etc r categorized as "marketing expenses". but the benefits generated due to it r larger sales volumes, more income, improved brand image etc etc etc. these r profits also. but resulted from an apparant loss (cash out flows).
the important thing is the present value of future cash inflows (financial mgmt approach) rather than profits by subtracting expenses from revenues (accounting approach).
well mates, feel free to raise ur views abt it.
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FARHAN
live, n let live ...
