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Sources of funds and applications of funds for a particular period.
Fund flow statement meaning. A fund flow statement is a statement in summary form that indicates changes in terms of financial position between two different balance sheet dates showing clearly the different sources from which funds are obtained and uses to which funds are put. It represents from where the funds are received and where the funds are utilised by the company during a particular period. This can give insights into whether short-term funds are being put to long-term use or not an area that needs to be studied for sound financial management.
The funds flow statement has been replaced by the. Funds flow statement is also known as statement of sources and uses of funds. Inflow or outflows of the firms financial assets for a specific period.
Sample 1 Sample 2 Sample 3. In other words a statement showing the sources and uses. The fund flow statement helps the management understand how the funds are being used.
The funds-flow-statement is a report on financial operations changes flow or movements during the period. What is the Fund Flow Statement. Funds flow statement definition A financial statement that reported the changes in a companys working capital.
It is a statement which shows the sources an application of funds or it shows how the activities of a business is financed in a particulate period. It is also called an application of funds. It summarizes the financing and investing activities of the enterprise during an accounting period.
Meaning of Funds Flow Statement. Fund flow statement is a statement that compares the two balance sheets by analyzing the sources of funds debt and equity capital and the application of funds assets and its reasons for any differences. Fund Flow Statement Definition.
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