The term fund has many meanings such as cash fund,capital fund and working capital fund.
In a narrow sense, fund means only cash.µCash flow statement¶ portrays net effect of the variousbusiness transactions on cash into account receipts &disbursement of cash.This concept of preparing fund flow statement is notaccepted, as there are many such transactions whichdo not affect cash but represent the flow of fund .example
purchase of furniture on credit does not affectcash
but there is flow of fund.2.
Here fund means all financial resourcesus
ed in the business, whether in the form of men,money, material, machine & others.3.
Net working capital means
difference between current asset and current liabilities.funds generally refers to cash or cash equivalent or toworkin caital.