0
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.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
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.
Cash flow statement may also be called?
funds statement
What is cash flow statement and why it is prepared?
Cash flow statement shows the cash flows from different activities and it is prepared to show how much cash inflow and outflow from operating, investing and financing activities.
What is the order that the financial statements should be prepared?
the income statement is first, followed by the the statement of owner or stockholder's equity balance sheet, and last the cash flow statement.
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 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.
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.
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.
Cash flow statement may also be called?
funds statement
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 is cash flow statement and why it is prepared?
Cash flow statement shows the cash flows from different activities and it is prepared to show how much cash inflow and outflow from operating, investing and financing activities.
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.
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"
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.
Distinguish between fund flow statement and cash flow statement?
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.
