Diffrence Between A Fund Flow Statement And Cash Flow Statement.
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Diffrence Between A Fund Flow Statement And Cash Flow Statement.
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 activities of the
Company.
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