Difference between CASH FLOW and FUND FLOW

FUND FLOW:

*Statement of source of fund and application of funds for a particular accounting period.

* It shows the future fund activities.

* It explains the increase or decrease of Working capital.

* This helps inverstors to know the future funding activities.

CASH FLOW:

* Factual presentation of inflow and outflow of cash.

* explains cash and cash equivalent movements for a particular accounting period.

*Types:

   1. Direct -  i. Operating Activities.

       ii. Investment Activiites.

    iii. Financial Activities.

   2. Indirect -  Net Income and adjustments to that income

* It explains to investors to understand the operations and functions for company how they have spent and from where the money is coming to the company.