Cash Flow Statement and Funds Flows statement

Cash Flow statement: Cash flow statement is a statement that shows the movements of cash. It takes the opening balance of cash adds all cash inflows and deducts all cash outflows to arrive at the closing cash balance.   Non-cash transactions are excluded from this statement.

Funds flow statement:. It shows the inflow and outflow of funds i.e. Sources and Applications of funds for a particular period. In other words, a Funds Flow Statement is prepared to explain the changes in the working capital Position of a Company. it is based on accrual system f accounting.