What is the difference between Balance Sheet and Fund Flow?
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Answer / srikanth
Balance sheet shows all the assets and liabilites at the end
of the financial year assets must equal liabilities.where as
in funds flow statement we allocate sources and applications.
the funds which comes to us will be written in sources and
the funds which we spend to purchase any type of asset will
be written in application.
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Find Flow- The net of all cash inflows and outflows in and
out of various financial assets. Fund flow is usually
measured on a monthly or quarterly basis. The performance
of an asset or fund is not taken into account, only share
redemptions (outflows) and share purchases (inflows).
Balance Sheet:-A financial statement that summarizes a
company's assets, liabilities and shareholders' equity at a
specific point in time. These three balance sheet segments
give investors an idea as to what the company owns and
owes, as well as the amount invested by the shareholders.
The balance sheet must follow the following formula:
Assets = Liabilities + Shareholders' Equity
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