Difference between cash flow and fund flow statement

Question

Accepted Answer

Cash flow statement shows inflow and outflow of cash while fund flow statement shows inflow and outflow of funds.

Cash flow statement deals with cash transactions while fund flow statement deals with all types of transactions.
Cash flow statement shows the liquidity position of the company while fund flow statement shows the financial position of the company.
Cash flow statement is prepared on the basis of actual cash transactions while fund flow statement is prepared on the basis of changes in the balance sheet items.
Examples of cash flow statement include operating cash flow, investing cash flow, and financing cash flow while examples of fund flow statement include changes in working capital, long-term borrowings, and equity capital.

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