Difference Between Cash and Fund

Cash is a current asset while Fund is a liability which may be current or non-current. Cash contains currency in physical form only, while fund contains cash, credit, cheque, kind, etc. The fund has a bigger approach than cash. Cash is liquid while the fund may or may not be liquid.

1. What is difference between cash flow and fund flow?
2. What is the difference between cash flow statement and fund flow statement .prepare format of fund flow statement?
3. What is Cash concept of fund?
4. What is importance of cash flow statement?
5. What is cash flow analysis?
6. What is fund flow statement and its uses?
7. What is fund flow statement in simple words?
8. How do you calculate fund flow?
9. What are sources and application of funds?
10. How do you prepare a statement of cash flows?
11. What is fund theory?

What is difference between cash flow and fund flow?

Cash flow statement contains opening and closing balances of cash and cash equivalents. ... On the contrary, Fund Flow statement uses the Accrual Basis of Accounting. Cash Flow statement shows the inflows and outflows of cash, but Fund Flow Statement shows the sources and application of funds.

What is the difference between cash flow statement and fund flow statement .prepare format of fund flow statement?

Fund flow statement is prepared to see the sources and uses of funds during a particular period and how that “change in the funds” affects the working capital of the company. The cash flow statement is created by following a cash basis of accounting.

What is Cash concept of fund?

(a) Cash Fund:

Some use the expression 'the amount of Cash' in a conservative or narrow sense, as it is synonymous with Cash (i.e. un-deposited cash plus demand deposits at bank). Fund statement is a statement where various types of cash transactions are to be evaluated in the form of 'Cash Flow Statement'.

What is importance of cash flow statement?

Importance of the Cash Flow Statement

Enables investors to use the information about historic cash flows of a company for projections of future cash flows on which to base their investment decisions. Shows the changes in the balance sheet, and helps in analysing the operating, investing and financing activities.

What is cash flow analysis?

A cash flow analysis is a method for checking up on your firm's financial health. It is the study of the movement of cash through your business, also called a cash budget, to determine patterns of how you take in and pay out money.

What is fund flow statement and its uses?

A Funds Flow Statement is a financial document that analyses a company's Balance Sheet of two years to validate the movement of funds from the previous financial year to the current year. ... It serves as a financial parameter that helps a company to control its finance and develop a better strategy to utilize funds.

What is fund flow statement in simple words?

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. It portrays the inflow and outflow of funds i.e. sources of funds and applications of funds for a particular period.

How do you calculate fund flow?

General Rules for Preparing Funds Flow Statement:

1. Increase in a current asset means increase (plus) in working capital.
2. Decrease in a current asset means decrease (minus) in working capital.
3. Increase in a current liability means decrease (minus) in working capital.

What are sources and application of funds?

a company's financial statement with details of where money has come from and how it has been spent during a particular period: A source and application of funds statement is usually produced to show the various sources of funds received during the period in question and how those funds have been spent.

How do you prepare a statement of cash flows?

We are going to learn how to prepare statement of cash flows by indirect method.

1. Step 1: Prepare—Gather Basic Documents and Data. ...
2. Step 2: Calculate Changes in the Balance Sheet. ...
3. Step 3: Put Each Change in B/S to the Statement of Cash Flows.

What is fund theory?

The fund theory emphasizes neither the proprietor nor the entity but a group of assets and related obligations and restrictions governing the use of the assets called a “fund.” Thus, the fund theory views the business unit as consisting of economic resources (funds) and related obligations and restrictions in the use ...