Difference Between Cash Flow Analysis/Statement And Fund Flow Analysis/Statement

May 18th, 2008 Comments off
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The main differences are as follows:


A cash flow statement is concerned only with the change in cash position while a fund flow analysis/statement is concerned the change in working capital position


Cash is part of working capital and an improvement in cash position results in improvement in funds position but the reverse is not true.


A cash flow statement is merely a record of cash receipts and disbursements. It does not reveal any important changes involving the utilization/disposition of resources.

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Financial Accounting


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