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