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• discuss the need for a fund flow statement; • distinguish between funds flow statement and other financial statements; • elaborate the procedure of preparing a funds flow statement; and • explain how the fund flow statement can be used in real life for different decision-making. 10.1 INTRODUCTION The balance sheet and profit and loss ...
Section: A. Prepared By: Vinay Kumar Shaw. Fund Flow Statement. Fund flow statement is a statement which shows the sources from which funds are obtained and uses to which fund are put. By fund are generally mean working capital.
Funds flow statement shows the inflows and outflows of funds – Sources and Application of funds during a particular period. Fund Flow - Background. Funds flow statement reveals the sources and applications of funds. It ascertains the changes in financial position between two accounting periods.
Funds Flow Statement is also called as Statement of Changes in Financial Position or Statement of Sources and Applications of Funds or where got, where gone Statement.
Funds Flow Statement is a statement prepared to determine the sources and uses of working capital between 2 balance sheet dates. Working Capital = Current Assets – Current Liabilities
Differentiate the funds flow statement from income statement and balance sheet; Prepare funds flow statement; Explain the meaning of certain key terms
Funds flow statement is a method by which we study changes in the financial position of a business enterprise between beginning and ending financial statement dates. It is a statement showing sources and uses of funds for a period of time. Examples of Current Assets are: Cash in hand. Cash at bank. Bills receivables. Stock. Debtors.
