Difference between cash flow statement and fund flow statement

Question

Accepted Answer

Cash flow statement shows inflow and outflow of cash while fund flow statement shows changes in working capital.

Cash flow statement focuses on cash transactions while fund flow statement focuses on changes in working capital.
Cash flow statement shows inflow and outflow of cash while fund flow statement shows sources and uses of funds.
Cash flow statement is a short-term analysis while fund flow statement is a long-term analysis.
Cash flow statement helps in assessing liquidity while fund flow statement helps in assessing solvency.
Example: Cash received from customers is shown in cash flow statement while changes in inventory are shown in fund flow statement.

Top Indian Oil Corporation Trade Apprentice interview questions & answers