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  • Diff Bet Fund Flow and Cash Flow Statemetn

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    The document discusses three types of financial statements: the cash flow statement, direct method, and indirect method. The cash flow statement shows changes in cash inflows and outflows during a period and can be prepared using either the direct method, which presents operating, investing, and financing activities, or the indirect method, which uses net income and adjusts for non-cash transactions. The funds flow statement shows the source and use of funds during a period. The major difference is that the cash flow statement allows investors to understand a company's operations, sources of money, and spending, while the funds flow statement shows funds for future company activities.

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    The document discusses three types of financial statements: the cash flow statement, direct method, and indirect method. The cash flow statement shows changes in cash inflows and outflows during a period and can be prepared using either the direct method, which presents operating, investing, and financing activities, or the indirect method, which uses net income and adjusts for non-cash transactions. The funds flow statement shows the source and use of funds during a period. The major difference is that the cash flow statement allows investors to understand a company's operations, sources of money, and spending, while the funds flow statement shows funds for future company activities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    13 views1 page

    Diff Bet Fund Flow and Cash Flow Statemetn

    Uploaded by

    9894452687
    The document discusses three types of financial statements: the cash flow statement, direct method, and indirect method. The cash flow statement shows changes in cash inflows and outflows during a period and can be prepared using either the direct method, which presents operating, investing, and financing activities, or the indirect method, which uses net income and adjusts for non-cash transactions. The funds flow statement shows the source and use of funds during a period. The major difference is that the cash flow statement allows investors to understand a company's operations, sources of money, and spending, while the funds flow statement shows funds for future company activities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    Cash Flow Statement : Statement showing changes in inflow & outflow of cash during the period.

    Methods of cash flow:1.Direct Method : presenting information in:Statement of A. operating Activities, B. Investment Activities C.Financial Activities 2.Indirect Method :uses net income as base & make adjustments to that income(cash & non-cash)transactions. Funds Flow Statement :Statement showing the sorce & application of funds during the period. Major Difference: The CFS allows investors to understand how a company's operations are running, where its money is coming from, and how it is being spent. FFS is showing the fund for the future activites of the Company.

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