The main differences between fund flow statements and balance sheets are summarized below. The following are the major points of difference between fund flow statements and income statements.Difference Between Fund Flow Statement and Balance Sheet
Difference Between Fund Flow Statement and Income Statement
Difference Between Fund Flow Statement, Balance Sheet, and Income Statement FAQs
A balance sheet shows the financial position of an organization as on a specific date. It lists all assets and liabilities of the organization at that point. Assets are items which can be easily converted into cash or used to generate cash, such as cash, receivables, inventories, equipment, and investments. Liabilities are amounts owed to others, such as accounts payable, notes payable, and long-term debt. The difference between the total of assets and liabilities is the owner's equity in the organization.
An income statement shows the profit or loss of a business over a period of time. It includes revenues and expenses for the period, and calculates net income or loss as the difference between these two amounts.
A fund flow statement shows how cash has flowed in and out of an organization over a specific period of time. A balance sheet shows the financial position of an organization at a specific point in time.
A fund flow statement shows how cash has flowed in and out of an organization over a specific period of time. An income statement shows the profit or loss of a business over a period of time.
Fund flow statements are prepared for the benefit of top management, and cannot be prepared without a schedule of change in Working Capital. They show where funds are received and how they are spent.
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