Education and Career Forum

Hi, I'm from Commerce background. However, I'm bit weak in Accountancy specially in Cash Flow and Fund Flow part. So, can anybody please explain me in detail about Cash Flow and Fund Flow. How does it works and the difference between these two? Their accounting treatment etc.?

Difference between Cash Flow and Fund Flow:-

Cash flow statement is the financial statements of the company which has the information related to the liquidity position of the company.

Fund flow statement has the information related to company only for a certain period. It is helpful in knowing the sources of funds and application of funds.

Hi,


The difference between Cash Flow Statement and
Funds Flow Statement is -->


Cash Flow Statement is a statement that shows the changes in cash position of the firm from one period to another.


It explains the inflows (receipts) and outflows (disbursements) of cash over a period of time.

Funds Flow Statement states the changes in the working capital of the business in relation to the operations in one time period.


Attached is the document that explains much more about the difference between the two.