Funds Flow Statement

I. Satyanarayana, N.B.C. Sidhu, Maddhi Ravi


Financial management is a service activity which is concerned with providing quantitative information which is of financial nature which may be needed for making Economic decisions regarding the choice among alternative course of actions. The financial management is a process of identification accumulation, analysis  preparation interpretation and communication of financial information to plan evaluate and control a business firm. Financial management is that specialized function of general management which is related to the procurement of finance and its effective utilization for the achievement of the goals of an organization. Finance may be defined as the provision of money at the time where, it is required. Finance refers to the management flews of money through an organization. It concerns with the application of skills in the manipulation, use and control of money. Different authorities have interpreted the term “finance “differently. However there are three main approaches to finance.

  • The first approach views finance as to providing of funds needed by a business on most suitable terms this approach confines fiancés to the raising of funds and to the study of financial institutions & instruments from where funds can be procured.
  • The second approach relates fiancé to cash.
  • The third approach views fiancé is being concerned with raising funds & their effective utilization.

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