There is also a difference between meaning, purpose and importance of Funds Flow Statement and Balance Sheet although both are prepared with the same accounting data.

Click to read - Distinction Between funds Flow Statement and Balance Sheet

We have fully explained the meaning and importance of both the statements-Funds Flow an Cash Flow statements.

Click to read - Distinction between funds flow statement and cash flow statement

Cash Flow statement is an essential tool for short term financial analysis an planning.

Click to read - Uses of Cash Flow Statement

Cash from operations shown in the Cash Flow Statement, shall be calculated a follows

Click to read - Cash from Operations

The statement is prepared annually, half yearly, quarterly or monthly with the help of two Balance Sheets (one at the beginning an the other at the end). Income statement and other information available from the receipts and disbursement account.

Click to read - Preparing a Cash Flow Statement

Cash Flow Statement is a statement like Funds Flow Statement.

Click to read - Cast-Flow Statement

Generally, Funds Flow Statement can be prepared in two formats-in report from or in an account form

Click to read - Form of Funds Flow Statement

The following are application of funds

Click to read - Application of Funds

Set proceeds of any fixed assets such as building, machinery, furniture or long-term investments shall generate funds because cash or debtors increase without any corresponding increase in current liabilities.

Click to read - Sale of Fixed Assets

These all sources contribute to funds.

Click to read - Funds from Issue of Debentures, Acceptance of Public Deposits and other Long-term Loans

Proceeds of fresh issue of share capital (including share premium or excluding any discount on issue of shares) increase the current asset (cash or bank) without any corresponding increase in current liabilities hence is a source of funds.

Click to read - Funds from issue of Share Capital

In order to find out funds from operations, items of in come (i) which do not affect the current assets or current liabilities, and (ii) which are not business income, are to be deducted from net profit.

Click to read - Items to be Deducted from Net Profits

The following items are added to the net profit as shown by the profit and loss account

Click to read - Items to be Added of Adjustment of Profit and Loss Account

The following adjustments are made in the profit and loss account to arrive at the figure of profits from operations

Click to read - Adjustment of Profit and Loss Account

Sales are the major sources of cash-inflow an at the same time cost of goods sold and expenses are the main sources of cash-outflow.

Click to read - Funds from Operations

Transactions that increase working capital are sources of funds.

Click to read - Sources of Funds

Funds Flow Statements is prepared in two parts- The first one is sources of Funds and the other is Uses of Funds or Application of funds.

Click to read - Procedure of Marketing Funds Flow Statement

Funds Flow Statement is an an analytical tool in the hands of financial manager. The basic purpose of this statement is to indicate on historical basis the changes in the working capital i.e., where funds came from and were there are used during a given period.

Click to read - Objectives (or Importance) of Funds Flow Statement

In every concern, the funds flow in form different sources and similarly funds are invested in various sources of investment.

Click to read - Funds Flow Statement