Impressive Advantage Of Fund Flow Statement
A Fund Generating Capacity.
Advantage of fund flow statement. A Funds flow statement is prepared to show changes in the assets liabilities and equity between two balance sheet dates it is also called a statement of sources and uses of funds. The current year funds flow statement is used for current year only and not useful for. Sep 29 2019 - There are Advantages and Disadvantages of Fund Flow Statement.
Advantages of Fund Flow Statements A Funds flow statement is prepared to show changes in the assets liabilities and equity between two balance sheet dates it is also called statement of sources and uses of funds. The Funds Flow Statement is helpful to the management in taking appropriate decisions with regard to the deployment or allocation of limited resources. Fund flow statement portrays the movement of the funds and changes in the financial position of the company between two accounting periods which the.
Advantages of Funds Flow Statement. It evaluate post financial performance. The advantages of such a financial statement are many fold.
They should be considered before forming any view of the sources and uses of funds. Advantages of Funds Flow Statement. Funds flow statement presents the following advantages.
Funds flow statement is prepared to show changes in the assets liabilities and equity between two balance sheet dates it is also called statement of sources and uses of funds. Some of these are. Advantages of Cash Flow Statement It shows the actual cash position available with the company between the two balance sheet dates which funds flow and profit and loss account are unable to show and therefore it is important to make a cash flow report if you want to know about the liquidity position of the company.
With the helps of cash flows from operating activities a Funds Flow Statement helps to understand the fund generating capacity of the firm which ultimately provides valuable information to the management for taking future courses of action. Benefits of preparing a fund flow Statement It helps to explain the managers of funds as to why the company is sitting in liquidity strain despite making profits as reflected in profit and loss statement. The advantages of such a financial statement are many fold.