Q8Managerial Economics & Financial Accounting
Question
2 marks
What is fund flow statement?
Answer
A fund flow statement tracks the sources and applications of a firm's working capital between two balance sheet dates.
A Fund Flow Statement is a financial statement that analyzes the changes in a company's financial position between two balance sheet dates.
It specifically highlights the Sources (where working capital was generated) and the Applications (how working capital was used) during that accounting period.