What is difference between cash flow statement and fund flow statement

What Is The Difference Between A Cash Flow Statement And An Income

Statement? * The cash flow statement and the income statement are integral parts of a corporate balance sheet. * A cash flow statement shows the exact amount of a company's cash inflows and outflows over a period of time. * The income statement is the most common financial statement and shows a company's revenues and total expenses, including noncash accounting, such as depreciation over a period of time. * The cash flow statement is linked to the income statement by net profit or net burn, which is the first line item of a cash flow statement, used to calculate cash flow from operations.

Cash Flow Statement | Fund Flow Statement 1\. It is prepared on the basis of cash and cash equivalents. | 1\. It is prepared on the basis of fund as working capital. 2\. Cash from operation is calculated. | 2\. Funds from operation is 3\. Statement of changes in working capital is not prepared. | 3\. Statement of changes in working capital is prepared. 4\. It is started with cash flows from operating activities. | 4\. It is started with funds from operation or funds lost in operation. 5\. It is ended with closing cash in hand and cash equivalents. | 5\. It is ended with either increase in working capital or decrease in working capital. 6\. The reasons for the change in

cash are known through cash flow statement. | 6\. The reasons for the change in working capital are known through fund flow statement. 7\. Short term financial pIanning is done through cash flow statement. | 7\. Medium term and long term financial planning is done through funds flow 8\. Cash flow analysis is based on cash concept. | 8\. Funds flow analysis is based on accrual concept. 9\. It is used for preparing cash budgeting. | 9\. It is used for preparing capital budgeting. 10\. It shows only changes in cash position. | 10\. It is concerned with the changes in working capital between two balance sheet dates. 11\. It is worked as an indicator of improved working capital. | 11\. It

is not necessary that an improved fund position will be an indicator of improved and sound cash position. 12\. Increase in current liability or decrease in current assets brings decrease in working capital and vice versa. | 12\. Increase in current liability or decrease in current asset brings increase in cash and vice versa. What is difference between cash flow statement and fund flow statement? ### Differences between Cash flow statement and Funds flow statement Cash flow statement is prepared to disclose the causes of changes in working Funds flow statement is prepared to disclose causes of changes in cash and cash equivalents. It is prepared on accrual accounting basis. It is prepared on cash system of accounting basis. It does not

have an opening and closing balances. It consists of opening and closing balances of cash. It is prepared for long-range financial planning. It is useful for only short-range financial planning. It contains all the components of working capital. It contains only cash, which is one of the components of working capital. Cash flow statement has become quite obsolete. Funds flow statement has to be prepared by every listed company, as per given

1. A statement that shows the changes in the cash and bank balance between opening and closing dates is known as a cash flow statement while a statement that shows the variations in the financial position between the two financial years is known as a fund flow statement. 2. Cash Flow Statement analyses the cash generating efficiency of the entity. Conversely, Fund Flow Statement examines the firm’s efficiency in utilising the working capital. 3. Cash Flow statement is a part of Financial Statement. Unlike Fund Flow Statement which is not a part of the Financial Statement 4. Cash Flow statement is useful

for a short term financial analysis of cash planning while Fund Flow Statement is helpful to a long-term analysis of financial planning. 5. Cash flow statement contains opening and closing balances of cash and cash equivalents. On the contrary, fund flow statement does not contains opening and closing balances of cash and cash equivalents. 6. Cash Flow statement uses the Cash basis of accounting. On the contrary, Fund Flow statement uses the Accrual Basis of Accounting. 7. Cash Flow statement shows the inflows and outflows of cash, but Fund Flow Statement shows the sources and application of funds.

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Differences Between Cash Flow And Fund Flow Statements

What S The Difference Between Income Statements And Cash Flow Statements

An income statement — also known as a Profit & Loss (P&L) report — shows how much money your business makes and spends within a given time period. In other words, it summarizes how your business earned revenue, paid expenses, and arrived at its bottom line. A cash flow statement shows the incomings and outgoings of your business's cash within a given time period. This type of report typically divides cash by RELATED: Consider other important metrics for measuring business performance.

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The Difference Between The Balance Sheet And Statement Of Cash Flows

Difference Between Cash Flow And Fund Flow Statements

Cash flow is a financial statement that details the cash inflows and outflows that happened during that particular accounting period. It describes how each transaction has resulted in the change of cash position of the company and calculates the net cash position of the company at the end of the accounting The fund flow statement details the inflows and outflows of funds during a particular accounting period. It analyses the changes

in the source of funds and the application of funds during an accounting period and calculates the financial position of a company at the end of the period. The main purpose of a cash flow statement to analyze the liquidity of a firm. Each section of a cash flow statement shows how the cash moved during that particular accounting period and the end result is total cash present with the

company during that period. Investors are keen on this figure as this is the amount available for making investments, repaying debt, etc. A fund flow statement is built with the purpose of analyzing the working capital of a firm. This statement closely observes how efficiently its funds are utilized in carrying out day-to-day operating activities. The end-result of a fund flow statement is the change in the working capital from

the previous year to the current year. A cash flow statement comprises of three sections – cash flow from operations (calculates the amount of cash generated from regular business activities like revenues from sales, expenses, working capital, etc.), cash flow from investing (details the amount of cash invested by the company in capital expenditure like buying plant, machinery, etc. and any other long-term investments like marketable securities and acquisitions) and

cash flow from financing activities (calculates the amount generated or spent by the company through the issuance of debt and equity). A fund flow statement consists of two main components – changes in working capital and statement reflecting the sources and application of funds. The working capital schedule captures the increase and decreases in the current assets and current liabilities during two accounting years. The statement of sources lists down

the amount realized by the company through issuing shares, debt, sale of fixed assets, etc. The application of funds section captures the information on where the funds were utilized like repayment of loans, purchase of fixed assets, increase in working capital expenditures and other expenses.

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