Difference Between Cash Flow and Funds Flow Statement

Many people think that both cash and fund are same, however they both are different and so is the case with cash flow statement and funds flow statement. Let’s look at some of the differences between cash flow and funds flow statement –

1. While funds flow statement reveals the change in the working capital of a company between two balance sheet dates while cash flow statement reveals the change in the cash position of the company between two balance sheet dates.

2. As funds flow statement shows the change in working capital it deals with all the components of working capital while cash flow statement deals only with cash and cash equivalents.

3. In case of funds flow statement schedule of changes in working capital is prepared while in case of cash flow statement no such schedule is prepared.

4. While cash flow statement there is classification of cash flows as cash flow from operating activities, cash flow from investment activities and cash flow from financing activities, but as far as funds flow statement is concerned there is no such classification.

5. As cash flow statement is only concerned with cash related transactions it is can be easily understood by a person who does not have accounting knowledge which is not the case with funds flow statement.

7 comments… add one
  • mamata pradhan

    very good and satisfactory answer.

  • Nazir Ahmad Noory

    thanks for adding above information i could solve my problem.

  • Stell

    The information is quite helpful. Thanks for adding to my knowledge.

  • Hanny Singh

    I satisfy with the answer … Thank you … For given it

  • g.venkatesan

    good explanation all the best

  • anku

    good content,easy language..

  • madhuri shaw

    Good explanation….

Leave a Comment

Related pages

example of a conglomeratemateriality concept accountingdcf techniquesadvantages and disadvantages of advertising on the internetwhat are the disadvantages of capitalismwhat is direct quotation and indirect quotationbenefits of autocratic leadershipcommand economic system advantages and disadvantagesadvantages disadvantages diversification strategyrelationship between bonds and interest ratesthe principle of absolute advantagecharacteristics of an authoritarian leaderfullform of micrfluctuation defdefinition of marginal costingtypes of factoring servicespurchase bill discountingfactoring in financial managementdefine complements in economicsdecentralized business structureterm deposit exampleideal liquidity ratiomeaning of trial balancedifference between freight and carriageexamples of complementary goods in economicsobjective of trial balancedefinition consigneewhat is trial balance why is it preparedimps transfer full formnet worth calculation formula for a companydisadvantages of commodity moneyadvantages and disadvantages of population growthexamples of veblen goodsslums-curse to urbanisationexplicit vs implicit costsfeatures of a capitalist economyadvantages of variable costingindustrial goods examplesdecentralisation advantagesdefinition traditional economyprepaid expenses journal entriespure monopoly economicsecs clearingwhat does the word consignment meanexamples of price skimming productsdu pont identityhypothecation examplefull disclosure principle accountingdifference between bearer cheque and order chequeindirect expenses in accountingwhat is a debenture loanincome effect and substitution effect of a price changeadvantages and disadvantages of organizational structureglobalisation merits and demeritssocial media advertising advantages and disadvantagesassumptions of diminishing marginal utilitymerits and demerits of modernizationwhat is absolute advantage in economicshire purchase advantages and disadvantagesgolden rules of accounts with examplesformula for operating leveragedeflation economics helpurbanization disadvantagescross exchange rate formulamerits and demerits of atmskimming pricing examplesprofitability ratio formulaadvantages and disadvantages of takeovers and mergersbarder and tradedistinguish between capitalism and socialismadvantages and disadvantages of investment appraisalpraveen kumar meaningidentify the advantages and disadvantages of a command economyadvantages of jit