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What is the difference between the Cash Flow and Funds Flow statements?

Harold Averkamp, CPA, MBA

Definition of Cash Flow and Funds Flow Statements

The cash flow statement, known formally as the Statement of Cash Flows, reports a company’s change in cash and cash equivalents from one balance sheet date to another.

The major cash flows are presented in one of three classifications:

  • Operating activities
  • Investing activities
  • Financing activities

The cash flow statement has been required by the Financial Accounting Standards Board (FASB) since 1988, when it issued its Statement No. 95.

The funds flow statement was required prior to 1988. Generally, the funds flow statement summarized a company’s changes in its working capital from one balance sheet date to another.

Example of Cash Flow Statement

For an example of the cash flow statement, search for a corporation with publicly-traded common stock and select Investor Relations. Then select annual reports to the SEC. From the financial section of the Form 10-K look at the corporation’s Statement of Cash Flows.

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on

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