Accounts
This query is : Resolved
28 January 2010
Dear sir,
wat is the difference between
cash flow statement and funds flow statement.
Regards
Rams
wat is the difference between
cash flow statement and funds flow statement.
Regards
Rams
Bishwajeet
(Expert)
28 January 2010
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.
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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