What is the same between cash flow statement and fund flow statement?, contrast cash flow statement and fund flow statement,
What is the same between cash flow statement and fund flow statement?, contrast cash flow statement and fund flow statement,
Distinguish between Cash Flow Statement and Fund Flow Statement. (Show the differences
between cash flow statement and fund flow statement.)
The statement through which the change in cash of the organization is known in detail is called cash flow statement. On the other hand, the statement which shows the inflow and outflow of funds in the organization is called the fund flow statement. Despite considerable similarities between the cash flow statement and the fund flow statement, several differences are observed between them. The differences are discussed below:
| matter of difference | Cash flow statement | Fund flow statement |
| 1. Concept base | The concept of cash flow statement is narrow. It is limited to cash only. | The concept of fund flow is comprehensive. It is prepared following the working capital concept or total assets concept. |
| 2. supply of information | The cash flow statement discloses only the amount of cash. | The fund flow statement is of cash only. Amount does not inform the related information but discloses the information about working capital. |
| 3. Advances or defaults | This statement includes only income received in cash and expenditure paid in cash; Expenses payable or income receivable are not included. | This statement includes expenses payable and income receivable. |
| 4. Time interval | Through this statement financial analysis can be done in short period of time. | Cash flow statement has to be relied upon as it is not possible to do financial analysis in short period of time through this statement. |
| 5. Early and mid-dawn effects | The cash flow statement begins with opening balances and ends with interim balances. | A cash flow statement does not have a beginning or ending cash flow statement. |
| 6. purpose | These statements are two balances of an organization Briefly discloses the reasons for the change in cash position between the dates of the sheet. | This statement summarizes the changes in the financial position of the organization between two balance sheet dates. |
| 7. usefulness | It is very useful in making short term plans. | It is more useful in formulating medium and long term plans. |
