Here I have one question. A po

Even if there is a positive net income on the income statementthose income statements are prepared as the principle of accrualaccounting and accrual accounting will be advocating for matchingprinciple of those income and expenditure in the same period forwhich the cash realisation had not been done.

In the income statement we are often recording sales and otherfigures when the transaction has been entered into, but the casehas not been received yet,but in the cash flow statement we areonly recording those statements which are leading to inflow andoutflow of cash so there will be a discrepancy between cash flowstatement and income statement and it is the reason because ofwhich the profits are not translated into cash completely so thereare various conceptual differences due to which we cannot treat thecomplete profit as cash and the incomes are not translating intocash as per the accrual concept