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what is the difference between cash flow and fund flow?
3 Answers
- MimiLv 51 decade agoFavorite Answer
Cash Flow
The amount of cash a company generates and uses during a period, calculated by adding non-cash charges (such as depreciation) to the net income after taxes. Cash flow can be used as an indication of a company's financial strength. The statement of cash flows presents the sources and the uses of the enterprise's cash by classifying each type of cash inflow and cash outflow according to the nature of the type of activity, such as operating activities, investing activities, and financing activities. The statement’s operating activities section identifies the cash generated or used by operations. Investing activities include the cash exchanged to buy and sell long-lived assets such as plant and equipment. Financing activities consist of the cash proceeds from stock issuances and loans and the cash used to pay dividends, to purchase the company's outstanding shares of its own stock, and to pay off debts.
I have never heard of a fund flow. You may refer to some endowment to a company which is a gift of money or property to a specified institution for a specified purpose
- 1 decade ago
cash flow are inflows and outflow of cash equivalents. an inflow increase the total cash and cash equivalent at the disposal of the enterprise whereas an outflow decrease them.
Funds means the net working capital i.e current assets minus current liabilities. Fund flow statement is a statement which lists first all the sources of funds and then all the application of funds that have taken place in a buiness enterprise during the particular period of time for which the statement has been prepared