How does cash flow statement differ from funds flow statement? What are the uses of cash flow statement?

The cash flow statement and the funds flow statement are two essential financial documents that serve different purposes in corporate accounting. Understanding the differences between them is crucial for analyzing a company's financial health and performance.

The cash flow statement provides a detailed account of the cash inflows and outflows over a specific period, usually a fiscal year or quarter. It categorizes cash flows into three main activities: operating, investing, and financing activities. Operating activities encompass the core business operations, including receipts from customers and payments to suppliers and employees. Investing activities relate to the acquisition and disposal of long-term assets, such as property, plant, and equipment, and investments in other companies. Financing activities involve transactions with ________ ___ ____ ___ ________ ________ _______.
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