diff b/w cf & ff
This query is : Resolved
Gaurav Ahuja
(Querist)
23 February 2011
plz tell the difference between cash flow statement & fund flow Statement
23 February 2011
A distinction between these two statements may be briefed as under:-
(i) Funds 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.
(ii) 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.
(iii) Funds flow shows an increase in a current liability or decrease in current assets as decrease in working capital and vice versa whereas Cash flow shows an increase in current liability or decrease in current asset as increase in cash and vice versa
(iv) Cash Flow Statement is started with the opening cash balance and closed with the closing cash balance while there a no opening or closing balances in Funds Flow Statement.
(v) Funds flow is useful for long term financial planning whereas Cash flow is useful for short term financial planning.
https://www.universalteacher4u.com/cbse/xii/acctheory/ch12/page1.htm
Please also see above link.
(i) Funds 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.
(ii) 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.
(iii) Funds flow shows an increase in a current liability or decrease in current assets as decrease in working capital and vice versa whereas Cash flow shows an increase in current liability or decrease in current asset as increase in cash and vice versa
(iv) Cash Flow Statement is started with the opening cash balance and closed with the closing cash balance while there a no opening or closing balances in Funds Flow Statement.
(v) Funds flow is useful for long term financial planning whereas Cash flow is useful for short term financial planning.
https://www.universalteacher4u.com/cbse/xii/acctheory/ch12/page1.htm
Please also see above link.
Gaurav Ahuja
(Querist)
23 February 2011
sir
can u give some example of items constituting funds (Working Capital)
plz help
can u give some example of items constituting funds (Working Capital)
plz help
23 February 2011
The most common definitions of working capital are:
* current assets - current liabilities
* stocks + trade debtors - trade creditors
* current assets - current liabilities
* stocks + trade debtors - trade creditors
Message likes :
1 times
Gaurav Ahuja
(Querist)
23 February 2011
sir
if there is change in stock, debtors or creditors then they also effect cash flow statement.also?
plz tell the item which we consider in fund flow statement but not in cash flow statement.
if there is change in stock, debtors or creditors then they also effect cash flow statement.also?
plz tell the item which we consider in fund flow statement but not in cash flow statement.
Ashok Asthana
(Expert)
24 February 2011
CMA Sanjay Guptas reply dated 23/02/2011 point no. iii needs clarification
Message likes :
1 times
24 February 2011
Ashok ji thanks for noticing the inadvertant mistake the same has been modified.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
