Follow Our FB Page << CircleMedia.in >> for Daily Laughter. We Post Funny, Viral, Comedy Videos, Memes, Vines...


what is difference cash flow and fund flow with example



what is difference cash flow and fund flow with example..

Answer / vikram batra

The statement of cash flows is part of the main group of financial statements that a business issues, though it is commonly considered to be third in importance after the income statement and balance sheet. The statement can be of considerable use in detecting movements of cash that are not readily apparent by perusing the income statement. For example, the income statement may reveal that a business earned a large profit, while the statement of cash flows shows that the same business actually lost cash while doing so (probably due to large investments in fixed assets or working capital). Thus, cash flow analysis is useful for determining the underlying health of a business.

The funds flow statement was required under GAAP from the period 1971 through 1987. The statement primarily reported changes in an entity's net working capital position between the beginning and end of an accounting period. Net working capital is an entity's current assets minus its current liabilities.

Is This Answer Correct ?    0 Yes 0 No

Post New Answer

More Accounting General Interview Questions

what is the difference bitween Consolidated and Parent Companies?

2 Answers   Capital IQ,


What is customer account?

0 Answers  


how to pass the opening stock entry & closing Stock entry in Tally ?

12 Answers   KBC, TCS,


can u tell me what is the process of calculating closing stock?

4 Answers  


2. A budgeted profit statement of a company working at 75% capacity is provided to you 2 below, Sales 9,000 units at Rs. 32 Rs. 2,88,000 Less: Direct materials Rs. 54,000 Direct wages 72,000 Production overhead: &#61485;fixed 42,000 &#61485;variable 18,000 1,86,000 Gross profit 1,02,000 Less: Administration, selling and distribution costs: &#61485;fixed 36,000 &#61485;varying with sales volume 27,000 63,000 Net profit 39,000 You are required to: (a) Calculate the breakeven point in units and in value. (b) It has been estimated that: (i) if the selling price per unit were reduced to Rs. 28, the increased demand would utilise 90% of the company's capacity without any additional advertising expenditure, and (ii) to attract sufficient demand to utilise full capacity would require a 15% reduction in the current selling price and a Rs. 5,000 special advertising campaign. You are required to present a statement showing the effect of the two alternatives compared with the original budget and to advise management which of the three possible plans ought to be adopted, i.e., the original budget plan or (i) above or (ii) above. (c) An independent market research study shows that by spending Rs. 15,000 on a special advertising campaign, the company could operate at full capacity and maintain the selling price at Rs. 32 per unit. You are required to: (i) Advise management whether this proposal should be adopted.

0 Answers  






what is the journal for bank charges? Give me sms on this no. 9885789716

1 Answers  


Hi, I am working at Himachal Pradesh, there we pay entry tax for purchase other state. but now govt decide this tax will be deposited with Sale Tax return, now my question is that where column i show this tax or which challn i deposit this tax

0 Answers   Carlton,


lic (life insurance corporation)how much he or she as to deduct income tax on his gross annual salary. please give with examples

0 Answers   CPT,


payment made to the credit card from bank.In that half are personal and half are business related.how to account these transaction without credit card ledger.

1 Answers   ABC,


Differentiate accounting and auditing?

0 Answers  


what are profitability ratios?

4 Answers   BA Continnum Solutions, FirstSource,


what are the transactional entries have to be passed in Letter of credit

2 Answers   Optimus,


Categories