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What is the difference between CASH FLOW and FUND FLOW?
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Answer Posted / rajni arora
Cash Flow Statement : Statement showing changes in inflow & outflow of cash during the period.
Methods of cash flow:
1.Direct Method : presenting information in Statement of
A. operating Activities
B. Investment Activities
C.Financial Activities
2.Indirect Method :uses net income as base & make
adjustments to that income(cash & non-cash)transactions.
Funds Flow Statement :Statement showing the source &
application of funds during the period.
Major Difference:
The Cash Flow S tatement allows investors to understand how a company's operations are running, where its money is coming from, and how it is being spent.
Fund Flow Statement is showing the fund for the future activites of the Company
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