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A fund flow statement is a statement in summary form that indicates changes in terms of financial position between two different balance sheet dates showing clearly the different sources from which funds are obtained and uses to which funds are put.
Fund flow statement in management accounting. It is a statement which discloses the analytical information about the different sources of a fund and the application of the same in an accounting cycle. For full course visit. A Funds Flow Statement is a financial document that analyses a companys Balance Sheet of two years to validate the movement of funds from the previous financial year to the current year.
The funds-flow-statement is a report on financial operations changes flow or movements during the period. On the accounting side the fund flow statement was required by GAAP between 1971 and 1987. It is a statement which shows the sources an application of funds or it shows how the activities of a business is financed in a particulate period.
Fund Flow Statement Fund flow statement is a statement that reflects the relative position of funds of the company over a two-period horizon and enables analysis of sources and uses of funds for a particular period of time. 91-8800215448Our Android App Link. 3 When it was required the statement of fund flow was.
HttpsclppagelinkGqsKIn this lecture I have explaine. Meaning of Funds Flow Statement. It portrays the inflow and outflow of funds ie.
Fund flow statement portrays the movement of the funds and changes in the financial position of the company between two accounting periods which the balance sheet or the profit and loss statement fail to provide. A funds flow statement is based on the accrual accounting system and does not provide explanation as to transactions affecting the cash or cash equivalents. Reason for Changes in the Financial Position between Two Accounting Periods.
Definition of fund flow statement A fund flow statement is a statement prepared to analyse the reasons for changes in the financial position of a company between two balance sheets. A fund flow statement is a statement in summary form that indicates changes in terms of financial position between two different balance sheet dates showing clearly the different sources from which funds are obtained and uses to which funds are put. A fund flow statement highlights about where the funds have been generated and to what it has been put for use.
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