Distinguish between fund flow statement and cash flow statement?

Answer 1

Cash book just shows the cash receipt and cash payment without distinguishing for which purpose cash is paying out while in cash flow statement difference is shown to determine that cash is coming or going out from which activity.

Answer 2

The main differences are as follows:

1

A cashflow statement is concerned only with the change in cash position while a fund flow analysis/statement is concerned the change in working capital position

2

Cash is part of working capital and an improvement in cash position results in improvement in funds position but the reverse is not true.

3

A cash flow statement is merely a record of cash receipts and disbursements. It does not reveal any important changesinvolving the utilization/disposition of resources.

Answer 3

A cash flows statement shows the companies cash flow, or money "flowing" in and out of the company from expenses, purchases, sales, etc. Such statements are usually done monthly.

A balance sheet is a summary of a person's or organization's (business') balances. Assets, liabilities, and owners equity are listed as of a specific date, such as the end of a financial year.

Answer 4

Many people think that both cash and fund are same, however they both are different and so is the case with cash flow statement and funds flow statement. Let's look at some of the differences between cash flow and funds flow statement -

1. While funds flow statement reveals the change in the working capital of a company between two balance sheet dates while cash flow statement reveals the change in the cash position of the company between two balance sheet dates.

2. As funds flow statement shows the change in working capital it deals with all the components of working capital while cash flow statement deals only with cash and cash equivalents.

3. In case of funds flow statement schedule of changes in working capital is prepared while in case of cash flow statement no such schedule is prepared.

4. While cash flow statement there is classification of cash flows as cash flow from operating activities, cash flow from investment activities and cash flow from financing activities, but as far as funds flow statement is concerned there is no such classification.

5. As cash flow statement is only concerned with cash related transactions it is can be easily understood by a person who does not have accounting knowledge which is not the case with funds flow statement.

Answer 5

Income statement calculates in net income or loss for specific fiscal year while cash flow statement provides information about cash inflows and outflows from operating, financing and investing activities.

Answer 6

1. Cash flow statement shows only the cash inflows and outflows from operating , investing and financing activities while income statement shows the income and expenses from operations for specific financial year whether those cash for those income or expenses actually received or paid or not.

Answer 7

The balance sheet is a snapshot of the firm's financial resources and obligations at a single point in time, which include assets, liabilities and owners equity (or stockholders equity) and the income statement summarizes a firm's financial transactions over an interval of time. These two financial statements reflect the accrual basis accounting used by firms to match revenues with the expenses associated with generating those revenues.

The cash flow statement includes only inflows and outflows of cash or cash equivalents, it excludes transactions that do not directly affect cash receipts and payments. These non-cash transactions include depreciation or write-offs on bad debts or credit losses to name a few. The cash flow statement is a cash basis report on three types of financial activities: operating activities, investing activities, and financing activities. Non-cash activities are usually reported in footnotes.

Answer 8

cash book prepared before balance sheet .

cash flow statement prepared after balance sheet

Answer 9

A budget is a plan for how to spend/save money. A cash flow statement shows when and were the money was spent.