What is Funds Flow Statement
Fund means the net working capital. Funds flow statement is a statement which lists first all the sources of funds and then all the applications of funds that have taken place in a business enterprise during the particular period of time for which the statement has been prepared. The statement finally shows the net increase or net decrease in the working capital that has taken place over the period of time.
Float: The difference between the available balance and the ledger balance is referred to as the float.
Collection Float: The amount of cheque deposited by the firm in the bank but not cleared.
Payment Float: The amount of cheques issued by the firm but not paid for by the bank.
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