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

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