Nice Distinguish Between Cash Flow And Fund Flow
Thus the difference between cash flow and fund flow highlights the conceptual limit of cash and a broader inclusion for funds.
Distinguish between cash flow and fund flow. 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. The difference between cash flow and fund flow statement is explained here in tabular formCash flow shows the movement of cash and cash equivalents while the fund flow shows the financial position of the firm over a period of time. Cash flow statements signify the changes in the cash and cash equivalents of the business due to the business operations in one time period.
On the other hand fund flow is the net of the different financial assets including the cash which flows in and out of your business. One can distinguish between cash flow and funds flow statements via. What is the difference between the Cash Flow and Funds Flow statements.
Cash flow statement records the inflows and outflows of cash while fund flow statement reports the sources and applications of funds. Main purpose is to show the movement of cash. The major differences between cash flow statement and fund flow statement are as follows.
Cash flow is derived from the statement of cash flows. A cash flow statement is concerned only with the change in cash position while a funds flow analysis is concerned with changed in working capital position between two balance sheet dates. The reasons for the change in cash are known through cash flow statement.
Fund flow is based on the concept of. The difference between cash flow and fund flow statement mainly depends on the components associated with each statement. Funds flow statements report changes in a businesss working capital from its operations in a single time period but have largely been superseded by cash flow statements.
It is ended with either increase in working capital or decrease in working capital. Cash flow is any cash or cash-like assets which are flowing in and flowing out of your business within a period of time like a month a quarter or so on. Inflows and outflows of cash and cash equivalents.