Sensational Fund Flow Statement Introduction
Funds Flow Statement is an important indicator of financial analysis and control.
Fund flow statement introduction. A range of variations in working capital which has taken place during that period is revealed through the statement. Importance of Fund Flow StatementGives information about amount of working capital and changes in the amount of working capital. It analyses the Profit Loss Account to reveal the effect of business activities of the concern on the flow of funds.
Funds flow statement is also known as statement of sources and uses of funds. It portrays the inflow and outflow of funds ie. The statement reveals the funds inflow and outflow during an accounting.
Fund Flow Statement Introduction and Meaning Fund flow statement is one of the important management tools for decision making. The change in economic resources from one asset or liability to another. The fund flow statement is the earlier version of the cash flow statement.
The financial analyst can evaluate the future flows of a. Funds flow statement is a statement which discloses the analytical information about the different sources of a fund and the application of the same in an accounting cycle. A Funds Flow Statement is a financial document that analyses a companys Balance Sheet of two years to validate the movement of funds from the previous financial year to the current year.
It is a tool for planning future activities of business. The cash flow statement is more comprehensive and details the multiple. Fund flow statement will provide us information about different sources of fund and their various uses in particular time.
A fund flow statement is a statement prepared to analyse the reasons for changes in the financial position of a company between two balance sheets. It is essentially derived from the analysis of changes which have occurred in assets and equities between two balance sheets period. It is a valuable aid to the financial manager and also to a creditor for assessing the uses of funds and also helps to determine how the funds are financed.