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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 / biplab dutta ray
1.Cash Flow Statement: Shows the MOVEMENT OF CASH during
the period under consideration under three heads viz.
Operating, Investing and Financing Activities
Funds Flow Statement: It shows the MOVEMENT OF FUNDS i.e
WORKING CAPITAL during the period under consideration.
2. Cash Flow Statement is preapred on CASH BASIS OF
ACCOUNTING
Funds Flow Statement: is prepared on ACCRUAL BASIS OF
ACCOUNTING since it takes into consideration not only cash
but also Funds movement.
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