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VOL. 11, ISSUE 10 (2024)
A conceptual study of fund flow statement
Authors
Shiv Narayan Chaudhary
Abstract
A statement of fund flow is created in order to assess the factors
behind changes in a company's financial status from one balance sheet to
another. It illustrates the movement of money in and out, showing where the
funds come from and how they are used during a specific timeframe. It is
equally appropriate to mention that a cash flow statement is created to clarify
the alterations in the company's working capital status. The necessity arises
because the profit and loss and balance sheet do not provide insight into the
reasons for a shift in the financial status. The profit and loss account and
balance sheet will show the financial figures for two years: the current year
and the previous year. However, it will not provide an explanation for why the
shift occurred, such as the increased utilization of long-term funds for
long-term purposes and the utilization of short-term funds for both short-term
and long-term needs. This is the reason for preparing the fund flow statement.
This article is a humble effort to examine the necessity and significance of a
Fund Flow Statement.
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Pages:56-57
How to cite this article:
Shiv Narayan Chaudhary "A conceptual study of fund flow statement". International Journal of Multidisciplinary Research and Development, Vol 11, Issue 10, 2024, Pages 56-57
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