Cool Use Of Fund Flow Statement
Sources of funds and applications of funds for a particular period.
Use of fund flow statement. A fund flow statement is a statement prepared to analyse the reasons for changes in the financial position of a company between two balance sheets. A Understanding fund generating ability. A sources and uses of funds statement often referred to as a flow of funds report provides a mechanism for reporting how a farms performance during an accounting period influenced and was influenced by major funding activities.
The financial resources of the company are analyzed in detail and disclose the changes made between the two balance sheet dates. It portrays the inflow and outflow of funds ie. It portrays the inflow and outflow of funds ie.
Funds flow statement helps the management in deciding its future course of plans and also it acts as a control tool for the management. This statement discloses the amounts raised from various sources of finance during a period and then explains how that finance has been used in the business. He also provides Accounts Tax GST Training in Delhi and Pune.
In other words fund flow is a statement which analyzes the inflow and outflow of funds of an organization or firm in a particular period. The fund flow statement. Objectives of Analysis of Funds Flow Statement.
Fund Flow Statement is significant as it analyzes the adjustments in financial position of an organization featuring the sources and applications of its funds. This report also reconciles information in the income statement the balance sheet and the cash flow statement. As the name implies it is a statement which depicts the sources from which funds are obtained and the uses to which they are being put.
It is thus a historical statement showing sources and application of funds between the two dates designed especially to. Funds Flow Statement is a tool for analysis and understanding changes in the distribution of resources between two balance sheet dates. Uses Significance and Importance of Fund Flow Statement Advantages of FFSPlease Subscribe my channel like share and commentPlease watch complete vide.