difference between Funds Flow and Cash Flow statements?
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Answer / j.s.prasanna
Cash flow is a statement which shows cash inflow and outflow
of cash during a particular period of time. It shows the
liquidity of the company.
Funds flow is a statement which shows inflow and outflow of
funds as well as explains the movement of funds, during the
accounting period. It is based on sources and applications.
Funds flow shows how the company can invest in future.
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Answer / hrishikesh kodmur
What Does Fund Flow Mean..
-The net of all cash inflows and outflows in and out of
various financial assets. Fund flow is usually measured on a
monthly or quarterly basis. The performance of an asset or
fund is not taken into account, only share redemptions
(outflows) and share purchases (inflows).
-Net inflows create excess cash for managers to invest,
which theoretically creates demand for securities such as
stocks and bonds.
What Does Cash Flow Mean?
-A revenue or expense stream that changes a cash account
over a given period. Cash inflows usually arise from one of
three activities - financing, operations or investing -
although this also occurs as a result of donations or gifts
in the case of personal finance. Cash outflows result from
expenses or investments. This holds true for both business
and personal finance.
-An accounting statement called the "statement of cash
flows", which shows the amount of cash generated and used by
a company in a given period. It is calculated by adding
noncash charges (such as depreciation) to net income after
taxes. Cash flow can be attributed to a specific project, or
to a business as a whole. Cash flow can be used as an
indication of a company's financial strength.
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Answer / florence
fund flow statement is prepared to take into consideration
the sources of funds and its application while cash flow
statement shows the inflow and outflow of cash of the firm.
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Answer / ajay
The Fund Flow statement shows from where the business got the fund and where the fund was applied for a particular period.
Please Note the WORD-"FUND". Fund means not containing cash but non-cash too. There may assets like furniture or anything which can come into business without paying cash......Like a businessman may use his personal furniute or any asset for business. This way the fund will come into business but not in cash form instead it is in furniture.
On the other hand, Cash flow statement shows only pure cash transactions in summarised form but absolute and not on net basis. Cash generated from different activities can be seen and it shows from which activities cash is coming and where it is outflowing.
The underlying difference between the two is inclusion of non-cash transactions so before distinguishing......learn the meaning of word "FUND".
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Answer / vicky haswani
cash flow statement deals with only cash related thing in a balance sheet while fund flow statement means changes in the working capital of company.
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Answer / robins
difference between fund flow and cash flow is
1- fund flow is boring and cash flow is to much boring
2- flow of fund is fund flow and flow of cash is cash
flow,,its very simple yaar..
i wrote this ans in xam and i pass ................
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Answer / chandu
funds flow statement refers the firm who to rise and how to
spend the funds, cash flow refers the who to bring the cash
and who to expense the cash.
| Is This Answer Correct ? | 45 Yes | 56 No |
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