Differences between Fund Flow Statement and Balance Sheet

Many people think that both fund flow statement and balance sheet are same however there are many differences between funds flow statement and balance sheet, let’s look at some of the differences between the two –

1. Fund Flow Statement is a statement which shows inflows and outflows of funds of the various items and their effect on the working Capital, while balance sheet is a schedule showing the balances of various accounts due to and due from the business at a particular date.

2. Fund Flow Statement can be prepared at any time while balance sheet is prepared at the end of accounting period only.

3. The objective behind preparing fund flow statement is to show change in various items of balance sheet between two balance sheet dates. But as far as balance sheet is concerned its objective is to show the financial position of the business at a particular date

4. While information contained in fund flow statement is used by internal management, but information contained in balance sheet is normally used by the outsiders.

5. While it is not necessary to publish the funds flow statement but publication of balance sheet is compulsory.

0 comments… add one

Leave a Comment

Related pages

economic value added advantages and disadvantagessystematic and unsystematic riskseconomic value added advantages and disadvantagesdisadvantages globalizationdefine materiality conceptperfect monopolistic competitioncrr and slrwhat are the advantages of barter systemexample of market skimmingbenefits of dictatorshipwhat is full form of micradvantages of loan syndicationwhat are the drawbacks of democracypositives of urbanizationdirect investment advantages and disadvantagesexplain the barter systemdisadvantages of functional organisationperfect pure competitiondirect expenses and indirect expenses in accountingwhat is planned economy definitionaccounting for sales returnsdisadvantages of command economyhorizontal analysis financial statementsfull form of tdsebit accountingdescribe the characteristics of a traditional economyselling debenturesthe disadvantages of globalisationcentrally planned economy definitiontrade discount accounting treatmentwhat is a floating currencycross exchange rate formulaadvantages and disadvantages of urban and rural lifeadvantages and disadvantages of a dictatorshiptypes of cost push inflationprinciple of conservatism in accountingwholesale funding vs retail fundingunsystematic risk definitionassumptions of capmdefine direct expensedeferred revenue journal entry examplepenetration pricing examples productsadvantages and disadvantages of developing countriesadvantages and disadvantages of functional organisational structureexample of diversifiable riskprofitability ratios formulatypes of demographic segmentationrigid cost plus pricingcibil score rangeadvantage and disadvantage of mixed economyintermediate goods definition economicsautocratic leadership characteristicsadvantages and disadvantages of bank loanhorizontal mergerwhat are the characteristics of mixed economyadvantages of monopolistic competitionadvantages of ppfadvantages of market segmentationexamples of complements economicsglobal warming advantages and disadvantagesdirect and indirect quotation for exchange ratesconsignors meaningmateriality accounting principleprofitability ratios formulasdiscounting and rediscounting of billsexamples of indirect quotationshypothecationsexamples of direct taxesvostro accountscertificates of deposits in indiaprivatization in india wikiratio analysis advantagesglobalisation benefits and disadvantagesadvantages and disadvantages of globalisation wikipediaautocratic leadership style disadvantagesforeign exchange reserves of india meaningwhat is meant by consigneemonopolistic competition definition economicswhat is normal and inferior goodsprofitability ratio formulafeatures of perfect competition and monopolyfull form of ipo