What are the difference between Cash Flow Statement and
Fund flow Statement? please explain me fully.

Answer Posted / kkchakravarthy25

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.

Is This Answer Correct ?    21 Yes 6 No



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