The Accounting Review Vol. 31 No. 3 1956
REPORTING ON THE FLOW OF FUNDS.
Abstract
The article presents a report on flow of funds. The need for a statement to report changes and movements not clearly reflected. The article presents a report on flow of funds. The need for a statement to report changes and movements not clearly reflected in the balance sheet and the income statement has long been felt. The positive uses of the funds statement and the reasons for the recent upsurge in its popularity are interesting. For one thing, the recent inflationary movement in this country, associated with a high level of business activity and high tax rates, has posed financing problems on a scale so large as to constitute really new problems to American business. A statement of source and application of funds becomes useful in explaining why a net profit of a million dollars is not identical with an increase in funds of the same amount, available to increase dividends or raise wages. Certain other characteristic problems arise in the preparation of a funds statement. It has less obviously but nevertheless just as certainly dictated the form and content of the balance sheet. To judge by published statements, it has also influenced the form and content of the funds statement.
- DOI
- 10.2308/tar-7059553
- Volume
- 31
- Issue
- 3
- Pages
- 375-385
- Language
- en
- Sources
- openalex crossref