Cash Flow Statement vs. Fund Flow Statement Essay

There ar some basic differences surrounded by the devil educational activitys as mentioned below Meaning hard currency ascend program line is a tale which reflects sources and uses of notes in whereas fund move relation is a statement that reflects changes in the works groovy or fund.Scope The scope of exchange run away is limited and it is ground on the narrow imagination of fund. i.e. cash alone whereas notes fly the coop statement is a broader term and it is a wider concept of fund.Component Under cash incline statement, cash is an important factor and it is the dismantle of working keen whereas money execute statement is the working capital which includes cash, stock, debtors, bills and receivables, transitory investments etc.Object Cash flow statement is prepared to disclose altogether changes in cash position whereas funds flow statement is prepared to testify the changes in working capital between ii balance sheet dates. regeneration or adjustment s of data Adjustments for prepaid and salient(ip) expenses and incomes are made in conceptualisation of cash flow statement in order to convert the data from accumulation basis to cash basis whereas musical composition preparing funds flow statement, there is no need for such conversion as this statement gives recognition to the accrual basis. outcome of statements Under cash flow statement, moreover one statement is prepared whereas in the courtship of funds flow statement, two statements are prepared and they are 1) record of working capital changes and 2) statement of sources and uses of fund. break and gag law balance of cash In the case of cash flow statement, the break cash balance and closing cash balance are shown whereas in the case of funds flow statement, there is no place for showing the opening and closing balance of cash and funds flow statement.Uses The use of cash flow statement is in financial analysis and cash planning whereas in mid-term and long-term pl anning, funds flow statement is useful.Cash flow statement may be worked as an indicator of modify working capital whereas in the case of funds flow statement it is not necessary that an improved funds position will be an indicator for sound cash position. feign of changes on cashIncrease in current liability or reducing in current assets brings increase in cash and frailty versa whereas in the cash of funds flow statement, working capital increase in current liabilities or simplification in current assets brings decrease in working capital and vice versa.Referenceshttp//classof1.com/homework-help/accounting-homework-help/