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managerial uses of fund flow analysis

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Q: State the managerial uses of funds - flow statement?
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What is fund flow statement how it differ from such flow statement explain the main sources and uses of funds?

Fund flow Statement helps to measure the different sources of funds. Funds Flow Statement analyses the Sources and Application of Funds while others don't.


Cash flow statement may also be called?

funds statement


Why funds flow statement prepared?

A funds flow statement compares a company's actual cash flow with its predicted cash flow. This allows a company to examine the factors that may have caused a failure to meet goals.


What are Managerial uses of fund flow statements?

Uses Of Fund Flow Statement1. The users of fund flow statement, such as investors, creditors, bankers, government, etc., can understand the managerial decisions regarding dividend distribution, utilization of funds and earning capacity with the help of fund flow statement. 2. The quantum of working capital is revealed by the schedule of working capital changes, which is a part of fund flow statement.3. The fund flow statement is the best and first source for judging the repaying capacity of an enterprise.4. The management will be able to detect surplus/shortage of fund balance.5. The fund from operation is not mentioned in the profit and loss account and balance sheet but it is separately calculated for the purpose of fund flow statement.


What is the basic purpose of funds flow statement?

Financial position of the company


What are the Significance of funds flow statement?

This statement gives an overview of how I plan to manage the finances of each year.


What defference between cash flow and funds flow ststement?

A distinction between these two statements may be briefed asFunds Flow Statement is concerned with all items constituting funds (Working Capital)for the business while Cash Flow Statement deals only with cash transactions. In other words, a transaction affecting working capital other than cash will affect Funds statement, and not the Cash Flow Statement.In Funds Flow Statement, net increase or decrease in working capital is recorded while in Cash Flow Statement, individual item involving cash is taken into account.Funds Flow statement is started with the opening cash balance and closed with the closing cash balance records only cash transactions.Cash Flow Statement is started with the opening cash balance and closed with ht closing cash balance while there a no opening or closing balances in Funds Flow Statement.


What do you mean by funds flow analysis.explain the mechanism involved in preparation of funds flow statement?

It is the statement of change in financial position, prepared to determine only source and uses of working capital between date of to balance sheet.


What is fund flow statement and their uses?

Uses Of Fund Flow Statement1. The users of fund flow statement, such as investors, creditors, bankers, government, etc., can understand the managerial decisions regarding dividend distribution, utilization of funds and earning capacity with the help of fund flow statement. 2. The quantum of working capital is revealed by the schedule of working capital changes, which is a part of fund flow statement.3. The fund flow statement is the best and first source for judging the repaying capacity of an enterprise.4. The management will be able to detect surplus/shortage of fund balance.5. The fund from operation is not mentioned in the profit and loss account and balance sheet but it is separately calculated for the purpose of fund flow statement.


In preparation of fund flow statement How can you treat If the working capital decreases?

when working capital decreases it should be written under the head SOURCES OF FUNDS in fund flow statement. and when W/C increases it should be written under APPLICATION OF FUNDS.


Is cash flow the same as income?

No a Profit & Loss statement will tell you net imcone, which is not the same as cash flow. Cash Flow is the result of a sources and uses of funds statement which is often a better indication of how a buisness is performning that the P&L.


What is the difference between final account and financial statement?

Financial Statement: Financial statement is a instrument used to present a companies financial position. Financial statement complies with balance sheet, cash flow and funds flow statements. Final accounts is the final stage of preparation of financial statement