02 March 2009
Cash Flow Statement : Statement showing changes in inflow & outflow of cash during the period.
Methods of cash flow: 1.Direct Method : presenting information in Statement of A. operating Activities B. Investment Activities C.Financial Activities
2.Indirect Method :uses net income as base & make adjustments to that income(cash & non-cash)transactions.
Funds Flow Statement :Statement showing the source & application of funds during the period.
Major Difference:
The Cash Flow Statement allows investors to understand how a company's operations are running, where its money is coming from, and how it is being spent.
Fund Flow Statement is showing the fund for the future activites of the Company