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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 / cma kiran kumar k.v.
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 sorce &
application of funds during the period.
Major Difference:
The CFS allows investors to understand how a company's
operations are running, where its money is coming from, and
how it is being spent.
FFS is showing the fund for the future activites of the
Company.
CMA Kiran
| Is This Answer Correct ? | 757 Yes | 112 No |
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