In this article we will discuss about the importance and limitations of funds flow statement. Following are the uses of this which show its importance: 1. Fund Flow Statement determines the financial consequences of business operations. It shows how the funds were obtained and used in the past. Financial manager can take corrective actions. 2. The management can formulate its [...]
Here is a compilation of top six accounting problems on fund flow statement with its relevant illustrations. Problem 1: From the following information relating to A Ltd., prepare Funds Flow Statement: Problem 2: Ramco Cements presents the following information and you are required to calculate funds from operations: Problem 3: The Balance Sheets of National Co. as [...]
In this article we will discuss about:- 1. Meaning of Funds Flow Statement 2. Preparation of Funds Flow Statement 3. Benefits and Drawbacks. Meaning of Funds Flow Statement: The profit and loss account and balance sheet statements are the common important accounting statements of a business organization. The profit and loss account provides financial information relating to only a limited [...]