What is the difference between fund flow and cash flow for
a company?
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Answer Posted / gravi
Fund flow is based on working capital, cash flow is based
on, cash which is only one element of working capital.
Fund flow is useful for long range financial strategy, cash
flow is usefule for short term phenomena affecting the
liquidity of business.
F.F changes in current assests and current liabilities are
shown thru the schedule of changes in working capital. In
cf changes of ca and cl is shown in cf statement itself.
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