Category: Funds Flow Statement

Funds Flow Statement: Nature and Utility | Financial Management

Read this article to learn about Funds Flow Statement. After reading this article to learn about: 1. Nature of Funds Flow Statement 2. Utility of Funds Flow Statement. Nature of Funds Flow Statement: Another significant technique of financial analysis is funds flow analysis designed to highlight changes in the financial condition of a business …...

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Preparation of Funds Flow Statement: 3 Concepts (With Calculations)

This article throws light upon the three concepts of the preparation of funds flow statement. The concepts are: 1. Cash Concept of the Term ‘Funds’ 2. Total Resources Concept of the Term ‘Funds’ 3. Working Capital Concept of the Term ‘Funds’. Concept # 1. Cash Concept of the Term ‘Funds’: According to this concept, …...

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Differences between Funds Flow Statement and Balance Sheet

Here we detail about the differences between funds flow statement and balance sheet. Differences #  Funds Flow Statement: (1) It is a statement of changes in financial position and hence is dynamic in nature. (2) It shows the sources and uses of funds in a particular period of time. (3) It is a …...

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Top 6 Sources of Funds Flow | Funds Flow Statement

Some of the important sources of funds for a business is as follows: Source of Fund # 1. Funds from Operations or Trading Profits: Trading profits or the profits from operations of the business are the most important and major source of funds. Sales are the main source of inflow of funds into the …...

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Top 6 Uses of Funds in Financial Analysis| Funds Flow Statement

The following points highlight the six uses of funds in financial analysis. Use of Fund # 1 Funds Lost in Operations: Sometimes the result of trading in a certain year is a loss and some funds are lost during that period in trading operations 1 Such loss of funds in trading amounts to an …...

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Types of Account in Funds Flows | Financial Statement Analysis

Read this article to learn about the two important types of accounts in fund flows, i.e., current and non-current accounts. To understand flow of funds, it is essential to classify various accounts and balance sheet items into current and non-current categories. Current Accounts can either be current assets or current liabilities. Current assets are …...

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Funds and Flows of Funds: Meaning and Concept | Financial Statement Analysis

Let us make an in-depth study of the meaning and concept of funds and flows of funds. Meaning and Concept of Funds: The term ‘funds’ has been defined in a number of ways: (a) In a narrow sense, it means cash only and a funds flow statement prepared on this basis is called a …...

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Procedure for Knowing Whether Transaction Results in Flow of Funds or Not?

Let us make an in-depth study of the procedure for knowing whether transaction results in flow of funds or not. (1) Analyze the transaction and find out the two accounts involved. (2) Make Journal Entry of the transaction. (3) Determine whether the accounts involved in the transaction are current or non-current. (4) If …...

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Difference between Funds Flow Statement and Income Statement

The upcoming discussion will update you about the difference between funds flow statement and income statement. Difference # Funds Flow Statement: (1) It highlights the changes in the financial position of a business and indicates the various means by which funds were obtained during a particular period and the ways to which these funds …...

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Fund Flow Statement and Income Statement: 5 Differences

The upcoming discussion will update you about the difference between fund flow statement and income statement. Fund Flow Statement: 1. Objectives: A fund flow statement deals with the financial resources required for smooth and efficient running the business activities. It depicts how much fund have been obtained from different sources and how they …...

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