Answer / rohit kumar pawecha

Q. what is the cash flow statemnet and fund flow statement
A. cash folw statement are showing all inflow and outflow
of an company or firms during the period

fund flow statement are showing resources and
application of the fund that is the show accurate position
of an firms. cahs and fund flow statemet is the concern
with financial activity and both are depend upon
balancesheet of the end of the financial years
cash flow statement show only inflow and outflow of the
company
when fund flow statemnet show all activity of the an
company
so that is the lot of difference between cash flow
statement and fund flow statement
this is the according my opinion

Answer / umesh ummat

1)
- Fund Flow Statement reveals the change in working
capital between two balance sheet dates ;
- Cash flow Statement reveals the changes in cash position
between two balance sheet dates.

2)
- Fund flow is based on accounting in overall
- Cash Flow is based on cash basis of accounting

3)
- Fund Flow Statement deals with all components of working
capital.
- Cash Flow statement deals with cash & cash equivalent
components.

Answer / rahul sharma

Cash flow shows the liquidity of the company, where as
funds flow shows how the company can invest in future


Cash Flow Statement : Statement showing changes in inflow &
outflow of cash during the period.

fund flow statement are showing resources and
application of the fund that is the show accurate position
of an firms. cahs and fund flow statemet is the concern
with financial activity and both are depend upon
balancesheet of the end of the financial years
cash flow statement show only inflow and outflow of the
company
when fund flow statemnet show all activity of the an
company
so that is the lot of difference between cash flow
statement and fund flow statement
this is the according my opinion

Answer / arun kumar

cash flow statement is a statement dealing with inflow and
out flow of cash during a accounting period.
fund flow statement is a statement dealing with source and
application of funds.
difference:-
1)cfs is inflow and out flow of cash.
but ffs deals with working capital.
2)it deals with three activities namely
operating ,financial and investing.
it deals with sourse and application.
3)cfs tells frow where cash is coming to business and how
cash is going out of business
ffs shows how working capital is changing over a
accounting period.

Answer / dinanath

Cash Flow Statement Explain Changes in cash balance due to
Current and non current transaction.

Fund flow statement explain changes in working capital due
to non current tansaction.

Answer / tv jairajan

Difference between cash flow & funds flow:
1. Cash flow statement is based on narrow concept i.e. Cash
= Fund; whereas funds flow statement is based on broader
concept i.e. Fund = Working capital.
2. Cash flow statement recognizes “cash basis of
accounting”; whereas funds flow statement is prepared on
“accrual basis of accounting”
3. Cash flow statement is useful for short term financial
planning; whereas funds flow statement is useful for long
term financial planning
4. Cash flow statement highlights only the causes of cash
variations; whereas funds flow statement discloses the
causes of overall working capital variations
5. In case of cash flow analysis, an increase in a current
liability or decrease in a current asset (other than cash)
results in increase in cash or vice verse; whereas in case
of funds flow analysis, an increase in a current liability
or decrease in a current asset results in working capital &
vice versa
6. Cash/Bank is part of working capital, if the cash/bank
position improves, it improves the funds position. If there
is inflow of cash, it means inflow of funds. But as funds
comprise other current assets & current liabilities, inflow
of funds need not necessarily mean inflow of cash. Hence,
sound funds position does not mean sound cash/bank position
but a sound cash/bank position means a sound funds position.

Answer / shiva kumar

We have fully explained the meaning and importance of both
the statements-Funds Flow an Cash Flow statements.





A distinction between these two statements may be briefed
as under:-

(i) Funds Flow Statement is concerned with all items
constituting funds (Working Capital)for the business while
Cash Flow Statement deals only with cash transactions. In
other words, a transaction affecting working capital other
than cash will affect Funds statement, and not the Cash
Flow Statement.

(ii) In Funds Flow Statement, net increase or decrease in
working capital is recorded while in Cash Flow Statement,
individual item involving cash is taken into account.

(iii) Funds Flow statement is started with the opening cash
balance and closed with the closing cash balance records
only cash transactions.

(iv) Cash Flow Statement is started with the opening cash
balance and closed with ht closing cash balance while there
a no opening or closing balances in Funds Flow Statement.

Answer / khasim basha

1.We will prepare cash flow for our daily activity for next
day out flow & presently how much we can release funds.

2.Taking general ananlysis refering to hold funds & how
much we need to spend in future for bussiness activity.

3.This is very important for every bussiness to take apt
decision,planning execution of bussiness development.

Answer / karan bansal

Fund Flow Vs Cash Flow statement..

Both are used in analysis of past transactions of a business
firms. the major differences are:

1) Fund flow statements is based on the accrual accounting
system. in case of preparation of cash flow statements all
transcations effecting the cash or cash equivalents is only
taken into consideration.

2) Fund flow statement analyses the source and application
of long term nature of the net increase and decrease of
fund. The cash flow statement considers the increase and
decrease of current assets and current liablities.

3) Fund flow statements tallies the fund generated from
various sources with variable uses to which they are put.
Cash flow statements starts with opening balance of cash and
reach to the closing balance of cash proceeding through
sources and uses.

Answer / biplab dutta ray

1.Cash Flow Statement: Shows the MOVEMENT OF CASH during
the period under consideration under three heads viz.
Operating, Investing and Financing Activities

Funds Flow Statement: It shows the MOVEMENT OF FUNDS i.e
WORKING CAPITAL during the period under consideration.

2. Cash Flow Statement is preapred on CASH BASIS OF
ACCOUNTING
Funds Flow Statement: is prepared on ACCRUAL BASIS OF
ACCOUNTING since it takes into consideration not only cash
but also Funds movement.

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