Funds flow analysis, Accounting Basics

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Funds Flow Analysis

This study is occasionally called as 'Statement of alter in Financial Position".  Beneath this analysis, a declaration is prepared which give details the decrease or increase in dissimilar related accounts for a particular time (that is, the changes in the Financial Position of a firm).  It dealing with the outflows and inflows of net working capital that result from several type of business activity.  It is broadly used by the Financial Analysts and credit granting Financial Managers and institutions. A Funds Flow Statement specifies the amount of modify in various balance sheet items between two accounting dates. 


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