Cash flow statement vs funds flow statement, Accounting Basics

Cash Flow Statement Vs Funds Flow Statement:  together the Cash Flow Statement and Funds Flow Statement give approximately comparable picture of the firm. They don't be different greatly from each other. Though, some of the dissimilarities between each other are as follows:

1.The Funds Flow Statement is greatly wider in purview than the Cash Flow Statement as it point outs the changes in the Working Capital while the Cash Flow Statement point outs the outflow and inflow of cash which is only one of the mechanism of the Working Capital

2. Funds Flow Analysis is stand on mercantile system of accounting where Cash Flow Analysis is stand on cash system of accounting

3. Funds Flow Analysis is helpful for long term scheduling as it offers more inclusive information than the Cash Flow analysis, which is further helpful for short term planning.

4. Funds Flow Analysis outlines the outflows and inflows of funds while Cash Flow study traces the inflows and outflows of cash inside the firm

5.Funds Flow analysis examines the changes in the Working Capital below a separate statement identified as agenda for changes in Working Capital while in cash flow analysis, the vary in both non-current and current items are done in a single statement.

Posted Date: 10/15/2012 6:31:08 AM | Location : United States







Related Discussions:- Cash flow statement vs funds flow statement, Assignment Help, Ask Question on Cash flow statement vs funds flow statement, Get Answer, Expert's Help, Cash flow statement vs funds flow statement Discussions

Write discussion on Cash flow statement vs funds flow statement
Your posts are moderated
Related Questions

on april-1,2005,raghu started a business of selling steel pipes and angles.he invested cash of Rs.50,00,000 & opened a current a/c with bank for Rs.20,00,000.He took loan from ICIC

Rosco Company purchased 35,000 shares of common stock of Paxton Corporation as a long term investment for $900,000. During the year, Paxton Corporation reported net income of $300,

__________ accounts show the amount of money owed to the firm by customers. A. Supply B. Prepaid C. Receivables D. Payables

Bank for International Settlements (BIS) A consortium bank recognized to coordinate the collection and rescheduling of German reparations after World War I, the BIS has surviv

Question: Part A: Briefly explain the term "depreciation" and give three reasons why do we need to provide for depreciation on fixed assets during a financial year. Part

what is the BRS

Critique the Ethics of those involved in the News of the World phone hacking scandal. Demonstrate in your critical analysis how the use of Ethics by the parties involved could have

Q. What do you mean by bookkeeping? Accounting is frequently confused with bookkeeping. Bookkeeping is a mechanical procedure that records the routine economic activities of a

Q. High-fiber Diet for diverticular disease? For mild symptoms, a clear liquid diet is recommended. More serious cases may require hospitalization, intravenous feeding to rest