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What is the differnce between funds flow & Cash flow?
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Answer Posted / b.c.tewari
The main differences are as follows:
1.A cash flow statement is concerned only with the change
in cash position while a fund flow analysis/statement is
concerned the change in working capital position
2Cash is part of working capital and an improvement in cash
position results in improvement in funds position but the
reverse is not true.
3A cash flow statement is merely a record of cash receipts
and disbursements. It does not reveal any important changes
involving the utilization/disposition of resources.
| Is This Answer Correct ? | 3 Yes | 1 No |
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