What is difference between fund flow statement and balance sheet?
The major differences between fund flow statement and balance sheet are as follows −
|Fund flow statement||Balance sheet|
Dynamic in nature.
No prescribed format.
Helps in decision making.
The need for a schedule of Change in working capital.
Doesn’t deal with personal accounts.
Various sources and uses of funds in a specific period.
Prepared after financial accounts are completed.
Prepared by management accountant.
Used by top management.
Static in nature.
To study in a financial position.
No need of schedule of Change in working capital.
Also, contain detail of personal accounts.
Profit and loss account is the basic in preparation of the balance sheet.
It is published.
Prepared after preparing profit and loss account
Prepared by a chartered accountant.
Used by external parties.
Published on 24-Jul-2020 06:49:30