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Difference between funds flow statement and cash flow statement |
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Answer» Answer: Cash Flow statement : shows the changes in the cash position (INFLOWS and outflows) of a firm. It is an analytical reconciliation statement which EXPLAINS the reasons for the differences between the opening and closing cash balances over a period. On the other hand. Fund Flow statement : is a statement that shows the ups and DOWNS of the financial position or the changes in working CAPITAL of the entity between the two financial years. |
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