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
activites of the Company.
In the cash flow statement increase in current liabilities
or decrease in current assets will increase in cash and
vice versa whereas in the fund flow statement increase in
current liabilities or decrease in current assets will mean
decrease in working capital .
normally fund means working capital. cash flow statement
deals with how the funds are receving and how the funds have
put. it also describe working capital poistion between two
balance sheets.
The Cash Flow Statement allows investors to understand how
a company's operations are running, where its money is
coming from, and how it is being spent. and describe the
future cash poistion
Supposed we raised the Bill to the party last year. Next
year party refused to pay the bill. Now I want write off
the ledger of that party. How i make journal entry?
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