Funds flow statement is a method by which we study changes in financial position of a business enterprise between two accounting periods. It is prepared with the help of two balance sheets of an enterprise. Broadly speaking, preparation of funds flow statement involves two stages, namely – 1. Statement or schedule of changes in working capital 2. Statement of sources [...]
In this article we will discuss about:- 1. Introduction to Funds Flow Statement 2. Meaning and Definition of Funds Flow Statement 3. Concept of Flow of Funds 4. External Sources Include of Funds 5. Applications of Funds Flow. Contents: Introduction to Funds Flow Statement Meaning and Definition of Funds Flow Statement Concept of Flow of Funds External Sources Include of [...]
The upcoming discussion will update you about the difference between fund flow statement and balance sheet. Difference # Fund Flow Statement: 1. It is dynamic in nature. It shows the changes in financial position between two dates. 2. It incorporates items causing changes in working capital. 3. It is a management tool for financial analysis and help in decision-making. 4. [...]