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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 / titus-chartered accountant.
Cash flow simply means a factual presentation of cash
inflows and outflows.This will give a clear picture of cash
and cash equivalents movement during a period of time. On
the other side fund flow is broader term which never
confine to cash movemnts only but this will show the
sources & application of funds and its movements over a
period of time.The major key aspect of fund flow is its
working capital presentation.Business operations can
easily be analysed through pointing out the movements of
working capital.The key decisions of management which
affect capital structure can be planned by utilising data
presented in fund flow statement through making a
comparison of working and fixed capital which will enable
progessive growth in prospective environment.
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