difference between Funds Flow and Cash Flow statements?
Answer Posted / 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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