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A Cash Flow Statement Can Be More Useful Than A Funds Flow Statement,is It?

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    Basically a fund flow statement is the one which gives the idea about the sources and utilization of funds. It is admitted that the cash flow statements are more useful as compare to the funds flow statements because cash flow statement not only shows the sources and uses of funds but it also shows the effectiveness of the allocation of funds. No doubt, "Cash is king", and cash flow statement provides the free cash flow available to the company. Moreover, fund flow statement just gives the account of the uses of funds and it has nothing to do with the financing and investing decisions of the company but cash flow statement gives the details about such decisions of the company.
    1 0

    Amber22 

    answered 1 year ago

      Nope, the evidences provided by Amber aren't enough to show the usefulness of more Cash flow than fund flow.

      Basically, both are of different nature. Fund flow shows the Working Capital of the firm while cash flow is the statement showing the activities of Cash in a firm.

      Simply, fund flow shows circulation of funds of a company & Cash flow shows cash circulation by or in a company.

      So both have their own importance.
      1 0

      Yasirbaqar 

      answered 12 months ago

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