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The funds flow statement has several disadvantages, including its historical nature, as it primarily focuses on past financial activities and may not provide an accurate picture of a company's current financial health. Additionally, it does not reflect cash flows, making it less useful for assessing liquidity. The statement can also be complex and time-consuming to prepare, potentially leading to inaccuracies if not carefully managed. Finally, it may be less relevant for decision-making compared to other financial statements, such as the cash flow statement.
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Cash flow statement may also be called?
funds statement
Why funds flow statement prepared?
A funds flow statement compares a company's actual cash flow with its predicted cash flow. This allows a company to examine the factors that may have caused a failure to meet goals.
Features and disadvantages of cash flow statement?
feature of cash flow
What do you mean by funds flow analysis.explain the mechanism involved in preparation of funds flow statement?
It is the statement of change in financial position, prepared to determine only source and uses of working capital between date of to balance sheet.
The purpose of consolidated financial statement?
To understand the position of the group as a whole and also the inter flow of funds between parent and subsidiary companies.
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.
Cash flow statement may also be called?
funds statement
Why funds flow statement prepared?
A funds flow statement compares a company's actual cash flow with its predicted cash flow. This allows a company to examine the factors that may have caused a failure to meet goals.
Features and disadvantages of cash flow statement?
feature of cash flow
State the managerial uses of funds - flow statement?
managerial uses of fund flow analysis
What is the basic purpose of funds flow statement?
Financial position of the company
What are the Significance of funds flow statement?
This statement gives an overview of how I plan to manage the finances of each year.
What defference between cash flow and funds flow ststement?
A distinction between these two statements may be briefed asFunds 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.
What do you mean by funds flow analysis.explain the mechanism involved in preparation of funds flow statement?
It is the statement of change in financial position, prepared to determine only source and uses of working capital between date of to balance sheet.
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.
Advantages and disadvantages of owner funds?
There are many advantages and disadvantages of owner funds. The advantages and disadvantages of owner funds depends largely on the person.
Is cash flow the same as income?
No a Profit & Loss statement will tell you net imcone, which is not the same as cash flow. Cash Flow is the result of a sources and uses of funds statement which is often a better indication of how a buisness is performning that the P&L.
