Question

Define The Terms 'fund' And 'flow' In The Context Of The Funds Flow Statement. How Is A Funds Flow Statement Prepared?

Answer 1

Funds Flow Statement: Meaning & How to Prepare It shows the inflow and outflow of funds i.e. Sources and Applications of funds for a particular period. In other words, a Funds Flow Statement is prepared to explain the changes in the Working Capital Position of a Company.