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- management of various companies are able to review their cash budget with the aid of fund flow statements
- Helps in the evaluation of alternative finance and investments plan
- Investors are able to measure as to how the company has utilized the funds supplied by them and its financial strengths with the aid of funds statements.
- It serves as an effective tool to the management of economic analysis
- It explains the relationship between the changes in the working capital and net profits.
- Help in the planning process of a company
- It is an effective tool in the allocation of resources
- Helps provide explicit answers to the questions regarding liquid and solvency position of the company, distribution of dividend and whether the working capital is effectively used or not.
- Helps the management of companies to forecast in advance the requirements of additional capital and plan its capital issue accordingly.
- Helps in determining how the profits of a company have been invested: whether invested in fixed assets or in inventories or ploughed back.
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How is a fund flow statement prepared give answer with imaginary figures?
how is a fund flow statement prepared ?give your answer with imaginary figure.
What is another name for cash flow of statement?
Another name of cash flow statement is fund flow statement.
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.
What is another name for the statement of cash flows?
Another name of cash flow statement is fund flow statement.
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.
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 constitute an financial statement?
balance sheet profit&loss account cash flow statement fund flow statement
Does purchasing equipment with a note payable appear on the cash flow statement?
No it must be a fund flow statement
State the managerial uses of funds - flow statement?
managerial uses of fund flow analysis
You want some solved questions on fund flow statement?
yes
2 Fund flow statement also suffers from window dressing of accounts and hence fails to give true view of fund movement Do you agree with this criticism Give your views?
Its about the limitation of fund flow statemants .....
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.
