FOR INDIA'S BEST CA CS CMA VIDEO CLASSES CALL 9980100288 OR VISIT HERE
PREDICT YOUR RANK!
Answer below questions and predict your rank
  • How important it is for you to pass the exam in this attempt?
  • What percentage of course you have finished well so far roughly?
  • How many hours you study in a day?
  • How many times you have revised the topics you have finished
  • Have you taken online or pen drive or live class from a renowned faculty?
  • What percentage of the classes you have watched?
  • Have you attempted mock tests or practice tests yet?
  • Are you planning to attempt mock tests conducted by external bodies- ICAI, ICSI, ICMAI or other institute?
  • How many tests you have taken?
  • Did you manage to finish the test papers on time?
  • Are you strictly following study material provided by the exam conducting authority such as ICAI/ICSI/ICMAI/Other Body?
  • How is your health in general?
  • How is your food habit?
  • Any interest in yoga or exercise or play sports regularly?
  • Planning to sleep well nights before the exams?
  • Planning to have light food and water before exams?

What is the difference between cash flow and funds flow statement?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 asked

What is the difference between cash flow and funds flow statement?

    0       0 Answer Now Comment Report
5 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

1.Cash flow is a statement which disclose the changes in cash position between the two periods. 2.eg-balance sheet of 31.3.14 shows cash Rs.30000.and as on 31.3.15 Rs. 40000.Means there is inflow of 10000 during the year. 3.The cash flow is prepared in accordance with AS 3. 4.The difference of cash flow can be devided in three activities namely operating activities,investing activities,financing activities. Fund Flow statement 1.Ascertaining the changes in financial position of a firm between two accounting period is known as funds flow statement. 2.It basically analyses the reason for changes in financial position between two balance sheets. 3.It shows inflow and outflow of funds i.e sources and applications of funds. 4.Fund means working capital.here you need to calculate difference between current assets and current liabilities. 5.Sources of fund -Eg-issues shares and debentures for cash,long term loans,sale of investment /fixed assets. 6.Application of funds-eg-purchase of fixed asset,redemption of debentures,preference of shares,repayment of loan.

    0       0 Comment Report
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below – 
For any questions Request A Call Back  
Open uri20170510 32134 1nqu8aj?1494421649 answered

hii the main differences are i) A cash flow statement shows only the changes in cash position, whereas a funds flow statement shows changes in working capital position between two balance sheet dates. Cash is only one of the elements of working capital. Therefore, a funds flow statement has a wider coverage than a cash flow statement. (ii) A cash flow statement is merely a record of cash receipts and payments. It is no doubt useful but it does not show many important changes involving the disposition of resources. In studying the short-term solvency of a firm one is interested not only in cash balance but also in the assets which are easily convertible into cash. Funds flow statement provides information about such assets. (iii) Cash flow statement is more useful to the management as a tool of financial analysis in short term. Funds flow statement is more useful in long-term. iv)Cash is a part of working capital. Therefore, an improvement in cash position results in an improvement in the funds position. An inflow of funds may not result inflow of cash. In other words, a sound cash position generally means a sound funds position but a sounds funds position does not necessarily mean a sound cash position. (v) The technique of preparing a funds flow statement is different from the technique of preparing a cash flow statement. An increase in the current liability or a decrease in a current asset results in an outflow of funds. But an increase in current liability or decrease in current assets (other than cash) does not result in cash inflow.

    1       0 Comment Report
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

CASH Flow 1.Cash flow is a statement which disclose the changes in cash position between the two periods. 2.eg-balance sheet of 31.3.14 shows cash Rs.30000.and as on 31.3.15 Rs. 40000.Means there is inflow of 10000 during the year. 3.The cash flow is prepared in accordance with AS 3. 4.The difference of cash flow can be devided in three activities namely operating activities,investing activities,financing activities. Fund Flow statement 1.Ascertaining the changes in financial position of a firm between two accounting period is known as funds flow statement. 2.It basically analyses the reason for changes in financial position between two balance sheets. 3.It shows inflow and outflow of funds i.e sources and applications of funds. 4.Fund means working capital.here you need to calculate difference between current assets and current liabilities. 5.Sources of fund -Eg-issues shares and debentures for cash,long term loans,sale of investment /fixed assets. 6.Application of funds-eg-purchase of fixed asset,redemption of debentures,preference of shares,repayment of loan. This topic is very important in practical life for large financing report which are prepared by CA's

    1       0 Comment Report
Picsjoin 2017224123730582 answered

Hie Pinky, Difference between cash flow and fund flow statement is as follows :- CASH FLOW --------- Companies receive inflows of cash revenue from selling goods, providing services, selling assets, earning interest on investments, rent, taking out loans or issuing new shares. Cash outflows can result from making purchases, paying back loans, expanding operations, paying salaries or distributing dividends. Since the Securities and Exchange Commission (SEC) requires all listed companies to use accrual accounting – which largely ignores the actual balance of cash on hand – investors and lenders rely on the statement of cash flow to evaluate a company's liquidity and cash flow management. It is a more reliable tool than metrics companies use to dress up their earnings, such as earnings before interest, taxes, depreciation and amortization. FUND FLOW --------- The statement of fund flow was primarily used by accountants to report any change in a company's net working capital during a set period of time. Much of this information is captured in the statement of cash flow. The investing use of fund flow is more useful today. Here, overall investor sentiment can be gauged as it relates to different asset classes. If the flow of funds for equities is positive, for example, it suggests that investors have a generally optimistic view of the economy (or at least the short-term profitability of listed companies).

    1       0 Comment Report
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

**DIFFERENCE BETWEEN CASHFLOW AND FUNDFLOW STATEMENT`** Cashflow statement shows the incoming and outgoing cash of the firm and also of cash equivalents of certain period whereas fundflow statement is statement which shows changes in the financial position of the organisation Cashflow statement is prepared to show how and why there are changes in the cash flow from beginning to the end fundflow is prepared to show why there are changes in financial position which is compared to past year;s performance Cashflow is a short term analysis whereas fundflow is long term. Cashflow is part of financial statements of company but fundflow is not part of financial statements of company Thanks

    1       0 Comment Report
Get Notifications
Videos
Books
Notes
Loading
Watch best faculty demo video classes

These top faculty video lectures will
help u prepare like nothing else can.