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Movements within cash or cash equivalents should not be reported.
Since the Funds From Operations appears on the credit side of the Appropriation account, they would certainly provide qualitative information for the decision making, it is sufficient to understand the total amount of cash generated by or used in operating activities.
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Fund flow statement is a statement of cash inflows and cash outflows There are persons who feel that the funds are cash or working capital which represent the excess of current assets over current liabilities.
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It highlights the changes in financial position of a concern and indicates the various means by which funds were obtained during a particular and the ways to where these funds were utilized.
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For investment purposes, the cash flow statement can be drawn up in a budget form and later compared to actual figures.
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Fund flow statement is an important tool for working capital management Some definitions.
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Financing activity in a cash flow statement includes flows of cash that are specifically used to fund the operation of the business Examples of financing cash flow.
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The term flow means movement includes both 'inflow' 'outflow' The term flow of funds means transfer of economic values from one asset of equity to another.
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By creating a cash flow budget you can project sources and applications of funds for.
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