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 statementBalance 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.

  • Not published.

  • Prepared after financial accounts are completed.

  • Prepared by management accountant.

  • Used by top management.

  • Static in nature.

  • Prescribed format.

  • 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.

Updated on: 24-Jul-2020

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