Friday
Apr012011
What is a funds flow statement?
Friday, April 1, 2011 at 4:35PM The funds flow statement is the earlier version of the statement of cash flows that is now required to report changes in an entity's cash flows during an accounting period.
The funds flow statement was required under GAAP from the period 1971 through 1987. The funds flow statement primarily reported changes in an entity's net working capital position between the beginning and end of an accounting period. Net working capital is an entity's current assets minus its current liabilities.
Related Topics
Direct method
Indirect method
How to prepare a cash flow statement
Statement of cash flows overview
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