what is the difference between cash flow statement and fund
flow statement..
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Answer Posted / ankita
Cash flow statement is concerned with the change in cash
and cash equivalents over a period of time( not necessarily
one financial year). Cash equivalents are short term highly
liquid investments that are readily convertible into known
amounts of cash.For eg: treasury bills, commercial funds.
Whereas, a funds flow statement is concerned with the
changes in working capital. Working capital is the excess
of Current assets over current liabilities. Since cash is
a part of current assets, therefore, cash flow statemnents
is a part of funds flow statement.
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