Distinction between Cash Flow Statement and Fund Flow Statement.
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| Distinction between Cash Flow Statement and Fund Flow Statement |
Cash Flow Statement
1. It summaries the
effect of cash on operating, investing and financing activities of a business
for an accounting period.
2. It is concerned
with cash.
3. It is based on
cash basis.
4. It is required
for short-term planning.
5. It shows the cash
generated from operations.
6. It shows changes
in working capital items (debtors, stock, creditors, bills receivable and bills
payable, etc.) more clearly.
Fund Flow Statement
1. It Focuses
changes in working capital during the accounting period.
2. It is concerned
with working capital.
3. It is based on
accrual basis.
4. It is required
for long-term planning.
5. It shows funds
generated from operation.
6. It shows the
changes in working capital at glance.
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