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

The main differences are as follows:

1

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

2

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

3

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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