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A fund flow statement or a cash flow statement records the changes in monetary funds over a period of time, usually by comparing the latest position at balance sheet date with the corresponding monetary position a year ago.

There are various elements of business that affect fund/cash flow. These include such things as increased sales, reductions or increases in debtors, longer or shorter times in paying creditors, repayments of loans, etc., a summary of which should be shown on separate lines of the statement. It can start with a section listing the elements that contribute to an increase in cash, then the next section lists those items which have contributed to a decrease in cash.

Space (and time!) does not permit more comprehensive details of what is needed and how to do it. You should consult a text book on Financial Accounting and look at the fund/cash flow statement of a company similar to the one for which you wish to prepare such a statement.

At the end of the fund/cash flow statement, if you have done all your calculations correctly, and taken everything that affects cash movement into account, your final figure will equal the cash figure in the balance sheet.

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Q: How can you Prepare fund flow statement?
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What is fund flow statement and their uses?

Uses Of Fund Flow Statement1. The users of fund flow statement, such as investors, creditors, bankers, government, etc., can understand the managerial decisions regarding dividend distribution, utilization of funds and earning capacity with the help of fund flow statement. 2. The quantum of working capital is revealed by the schedule of working capital changes, which is a part of fund flow statement.3. The fund flow statement is the best and first source for judging the repaying capacity of an enterprise.4. The management will be able to detect surplus/shortage of fund balance.5. The fund from operation is not mentioned in the profit and loss account and balance sheet but it is separately calculated for the purpose of fund flow statement.


What is fund and flow resources?

when the supply fund resources is permanent it is called flow resources. on other hand fund resources are those which are fdixed and limited in the quanity


You want to see reliance mutual fund online statement?

reliance mitual fund online statement hoe to view ?


Difference between fund flow statement and balance sheet?

Difference between fund flow statement and balance sheet?Funds flow statement and balance sheet both are the statements of different nature. Funds flow statement is a statement summarizing the significant financial changes which occurred between the beginning and the end of a company's accounting period while balance sheet is a statement of assets and liabilities at a particular point of time. Here are some of the important differences between the two:Funds flow statement include only those items which causes changes in working capital while balance sheet includes the assets and liabilities of the company and shows total resources of the company.Funds flow statement can be used for decision making purpose while balance sheet is used for examining the financial soundness of the company.Funds flow statement is prepared for the use of internal management and hence its preparation is not mandatory, while balance sheet is for the use of external parties like creditors, shareholders, government and hence its preparation is mandatory for the company.Funds flow statement is prepared after preparation of balance sheet and for a relatively short period of time as compare to balance sheet."Hence it can be said that funds flow statement is not a substitute of balance sheet but it is a supplementary statement and hence they should both be used together in order to reach at right conclusion regarding the financial position of the company"


Which also treated as Depreciation fund?

No FLow

Related questions

How is a fund flow statement prepared give answer with imaginary figures?

how is a fund flow statement prepared ?give your answer with imaginary figure.


What is another name for cash flow of statement?

Another name of cash flow statement is fund flow statement.


What is fund flow statement and their uses?

Uses Of Fund Flow Statement1. The users of fund flow statement, such as investors, creditors, bankers, government, etc., can understand the managerial decisions regarding dividend distribution, utilization of funds and earning capacity with the help of fund flow statement. 2. The quantum of working capital is revealed by the schedule of working capital changes, which is a part of fund flow statement.3. The fund flow statement is the best and first source for judging the repaying capacity of an enterprise.4. The management will be able to detect surplus/shortage of fund balance.5. The fund from operation is not mentioned in the profit and loss account and balance sheet but it is separately calculated for the purpose of fund flow statement.


What is another name for the statement of cash flows?

Another name of cash flow statement is fund flow statement.


What is fund flow statement how it differ from such flow statement explain the main sources and uses of funds?

Fund flow Statement helps to measure the different sources of funds. Funds Flow Statement analyses the Sources and Application of Funds while others don't.


What are Managerial uses of fund flow statements?

Uses Of Fund Flow Statement1. The users of fund flow statement, such as investors, creditors, bankers, government, etc., can understand the managerial decisions regarding dividend distribution, utilization of funds and earning capacity with the help of fund flow statement. 2. The quantum of working capital is revealed by the schedule of working capital changes, which is a part of fund flow statement.3. The fund flow statement is the best and first source for judging the repaying capacity of an enterprise.4. The management will be able to detect surplus/shortage of fund balance.5. The fund from operation is not mentioned in the profit and loss account and balance sheet but it is separately calculated for the purpose of fund flow statement.


What constitute an financial statement?

balance sheet profit&loss account cash flow statement fund flow statement


Does purchasing equipment with a note payable appear on the cash flow statement?

No it must be a fund flow statement


State the managerial uses of funds - flow statement?

managerial uses of fund flow analysis


You want some solved questions on fund flow statement?

yes


2 Fund flow statement also suffers from window dressing of accounts and hence fails to give true view of fund movement Do you agree with this criticism Give your views?

Its about the limitation of fund flow statemants .....


In preparation of fund flow statement How can you treat If the working capital decreases?

when working capital decreases it should be written under the head SOURCES OF FUNDS in fund flow statement. and when W/C increases it should be written under APPLICATION OF FUNDS.