Wonderful Difference Between Cash Flow And Fund Flow Analysis
Cash which is only one of the elements of working capital.
Difference between cash flow and fund flow analysis. Difference Cash Flow Statement. CASH FLOW FUND FLOW. It is started with funds from operation or funds lost in operation.
Inflows and outflows of cash and cash equivalents. It is ended with closing cash in hand and cash equivalents. Cash flow is based on the concept of outflow and inflow of cash and cash equivalents during a particular period.
Funds flow statement is based on broader concept ie. Cash flow refers to the concept of inflow and outflow of cash and cash equivalents during a particular period. Cash flow statement contains opening and closing balances of cash and cash equivalents.
Cash flow refers to the overall cash generated by the firm in a specific accounting period and is calculated as the sum total of cash from operations cash flow from financing and cash flow from investing activities whereas the fund flow of the company records movement of the cash in and cash out from the company during the specified period of time. Cash basis of accounting. Cash flow is derived from the statement of cash flows.
The primary difference between the two is that money available in physical form as a currency is termed as cash while funds concern all the financial resources in their entirety. CASH FLOW STATEMENT Cash flow statement is the actual movement of cash into and cash out of an organisationThe flow of cash into the business is called as cash inflow or positive cash flow and flow of cash out of the firm is called cash outflow or negative cash flow. Main purpose is to show the movement of cash.
The Cash Flow Statement. Cash Flow and Fund Flow are two completely different statements which are required for running a business and analysing its shortcomings. It is ended with either increase in working capital or decrease in working capital.