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what is the main defference between cash flow and funds flow
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A Cash flow statement is concerned only with the change of cash position while a funds flow analysis is concerned with change in working capital position between two balance sheet dates.
A Cash flow statement is merely a record of cash reciepts and disbursements.
While studying the short-term solvency of a business one is interested not only in cash balance but also in the assets which are easily convertible in to cash.
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Answer / sachin sharma
Cash flow statement is prepared to help the investors to understand how the operation of company is running, from where money is received and where money is spent while fund flow statement is prepared to show the fund for future activity of company.
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