A funds flow statement explains the changes in a business's working capital. It considers the inflows and outflow of funds (source of funds and application of funds) for a particular period. The funds flow statement helps in analysing the changes in a business's financial position between two balance sheet periods.
Join 4M+ learners. Unlock unlimited quizzes, wrong-answer tracking, flashcards + reminders, study guides, and 1-on-1 challenges.