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What is the difference between Cash Flow & Fund Flow
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Answer Posted / deepak awasthi
Cash flow is a staement who shaws that where are you using
you cash or bank amount funds and what's profit now. it can
be monthly / weekly / yearly also. Cash Flow statement is
very useful for the any company who know his direction of
flow.
MAny times you use ur current assets for the purcahse of
fixed assetes anf paid to creditors. In that condition
there is internal transation between liabilties & assets
who do not show cash flow then you prepare Fund Flow
statement to see your transffering funds
For eg. You sold a fixed asstes by cash or credit then your
assets will be decrease and your current assets wiill be
increase. There are fund flow.
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