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A distinction between these two statements may be briefed as

Funds Flow Statement is concerned with all items constituting funds (Working Capital)for the business while Cash Flow Statement deals only with cash transactions. In other words, a transaction affecting working capital other than cash will affect Funds statement, and not the Cash Flow Statement.

In Funds Flow Statement, net increase or decrease in working capital is recorded while in Cash Flow Statement, individual item involving cash is taken into account.

Funds Flow statement is started with the opening cash balance and closed with the closing cash balance records only cash transactions.

Cash Flow Statement is started with the opening cash balance and closed with ht closing cash balance while there a no opening or closing balances in Funds Flow Statement.

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9y ago

The basic differences between fund flow and cash flow analysis are concept, basis of preparation, working capital, link, and usefulness.

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Q: What defference between cash flow and funds flow ststement?
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