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What are Funds Flow Statements?

Answer Posted / surabhi agrawal

Though the balance sheet is known as the statement of
sources and applcation of funds, it does not disclose
information on movement of funds i.e. total funds raised
and total funds used during a year. this brings us to the
serious limitation to this statement. to overcome this
limitation of the balance sheet a atatement is prepared
called the fund flow statement.

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