Question

differences between flow and fund resources​

Answer 1

Answer:

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Explanation:

Comparative Table

Basis for Comparison Cash Flow Fund Flow

Inherent meaning Cash flow is based on a narrow concept called “cash”. Fund flow is based on a wider concept called “working capital”.

Usefulness The utility of the cash flow statement is to find out the net cash flow. The utility of fund flow is to understand the financial position of the company.

Source The cash flow statement starts with opening balance and after adjustments come out with net cash inflow/outflow. The fund flow statement calculates the difference between sources of funds and the application of funds.

WC shown Shown in the operating activities of the cash flow statement. Shown in the statement of changes in working capital.

Type of accounting Follows the cash basis of accounting. Follows the accrual basis of accounting.

Effect Through cash flow analysis we get to know the net cash flow. Through fund flow analysis we get to know the change in working capital.

Is it a financial statement? Yes. No.

Term Short term analysis of cash flow. Long term analysis of working capital.

Used for Cash budgeting. Capital budgeting.

Answer 2

Answer:

differences between flow and fund resources​

Explanation:

• innate significance Cash flow is founded on the specific idea of "cash." The foundation of fund flow is a more general idea known as "working capital."
• Usefulness The cash flow statement's main use is to calculate net cash flow. Understanding the company's financial status is the purpose of money flow.
• Source The opening balance of the cash flow statement is followed by adjustments to produce the net cash inflow and outflow. The difference between the sources of funds and the applications of funds is computed in the fund flow statement.
• WC shown shown in the cash flow statement's operating activities. reflected in the statement of changes in working capital.
• Accounting style is based on the cash method of accounting. is based on the accrual method of accounting.
• Effect We may learn about the net cash flow using cash flow analysis. Working capital change is revealed through fund flow analysis.
• Term cash flow analysis throughout the short term. Long-term working capital analysis.

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