PDA

View Full Version : Difference between funds flow and cash flow statement


krishnamallik
Dec 23, 2007, 10:21 AM
I wanted 2 know the difference between funds flow and cash flow statement

rusty2k
Feb 24, 2011, 10:20 AM
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 activities of the Company.