Inflows and outflows of cash. Cash flow refers to the current format for reporting the inflows and outflows of cash while funds flow refers to an outmoded format for reporting a subset of the same information. Difference in Cash Flow. The fund flow records the movement of cash in and out of the company. The Cash Flow Statement. Cash flow statement or statement of cash flows is a financial statement that shows how changes in balance sheet and income accounts affect cash and cash equivalents and breaks the analysis. Receipt of a bank loan intrest on savings and investments and shareholder investments etc Cash out Flow. This essentially means that you have earnings that havent actually generated any cash for the business or you have losses that didnt require the business to pay out any cash. Cash flow refers to the overall cash generated by the firm in a specific accounting period and is calculated as the sum total of cash from operations cash flow from financing and cash flow from investing activities whereas the fund flow of the company records movement of the cash in and cash out from the company during the specified period of time. The difference between cash flow and fund flow is that the former is more concrete and current while the latter is more abstract and doesnt only deal with recent data.
The difference between cash flow and fund flow statement is explained here in tabular formCash flow shows the movement of cash and cash equivalents while the fund flow shows the financial position of the firm over a period of time. The points given below are noteworthy so far as the difference between cash and fund is concerned. This statement is required under Generally Accepted Accounting Principles GAAP and. Purchase of stock raw materials or tools wages rents and daily operating expenses dividend payments income tax etc. It is started with funds from operation or funds lost in operation. Cash flow refers to the concept of inflow and outflow of cash and cash equivalents during a particular period. The reasons for the change in cash are known through cash flow statement. Funds flow statements report changes in a businesss working capital from its operations in a single time period but have largely been superseded by cash flow. The difference between cash flow and fund flow is that the former is more concrete and current while the latter is more abstract and doesnt only deal with recent data. The fund flow records the movement of cash in and out of the company.
Cash basis of accounting. Cash contains currency in physical form only while fund contains cash credit cheque kind etc. Cash flow statement or statement of cash flows is a financial statement that shows how changes in balance sheet and income accounts affect cash and cash equivalents and breaks the analysis. The fund flow records the movement of cash in and out of the company. Fund flow refers to the concept of financial changes in working capital over a period of time. Cash Flow and Fund Flow Differences. But in cash flow statement the data obtained on accrued basis is converted into cash basis. Cash flow is the net amount of cash being transferred into and out of a company. Cash flow is based on the concept of outflow and inflow of cash and cash equivalents during a particular period. Cash flow is derived from the statement of cash flows.
Cash Flow and Fund Flow Differences. The difference between cash flow and fund flow statement is explained here in tabular formCash flow shows the movement of cash and cash equivalents while the fund flow shows the financial position of the firm over a period of time. The funds flow statement is a report on the movement of funds or working capital. Cash flow statements signify the changes in the cash and cash equivalents of the business due to the business operations in one time period. It is ended with closing cash in hand and cash equivalents. Cash flow is derived from the statement of cash flows. While funds flow statement reveals the change in the working capital of a company between two balance sheet dates while cash flow statement reveals the change in the cash position of the company between two balance sheet dates. Cash contains currency in physical form only while fund contains cash credit cheque kind etc. Funds flow statement is in consonant with the actual basis of accounting. It is a summary of a firms inflow and outflow of funds.
This statement is required under Generally Accepted Accounting Principles GAAP and. It is started with funds from operation or funds lost in operation. Cash flow is based on the concept of outflow and inflow of cash and cash equivalents during a particular period. Cash basis of accounting. Revenue provides a measure of the effectiveness of a companys sales and. The difference between cash flow and fund flow is that the former is more concrete and current while the latter is more abstract and doesnt only deal with recent data. It tells us from where funds have come and where funds have gone. It is ended with closing cash in hand and cash equivalents. Fund flow is based on the concept of changes in working capital over a period of. The funds flow statement is a report on the movement of funds or working capital.
