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what is cash flow and funds flow? Difference between cash
and funds flow? methods of cash flow
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Answer Posted / karan bansal
Fund Flow Vs Cash Flow statement..
Both are used in analysis of past transactions of a business
firms. the major differences are:
1) Fund flow statements is based on the accrual accounting
system. in case of preparation of cash flow statements all
transcations effecting the cash or cash equivalents is only
taken into consideration.
2) Fund flow statement analyses the source and application
of long term nature of the net increase and decrease of
fund. The cash flow statement considers the increase and
decrease of current assets and current liablities.
3) Fund flow statements tallies the fund generated from
various sources with variable uses to which they are put.
Cash flow statements starts with opening balance of cash and
reach to the closing balance of cash proceeding through
sources and uses.
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