Consider the following statements regarding financial reporting: Statement 1: A Fund Flow Statement is a report on the movement of funds during a specific period that focuses on changes in the working capital position by identifying sources and applications. Statement 2: Unlike a Cash Flow Statement, the Fund Flow Statement completely excludes short term operational movements to provide a long term strategic capital view. Statement 3: The preparation of a Schedule of Changes in Working Capital is a prerequisite for creating a Fund Flow Statement. Which of the options correctly describes the accuracy of these statements?

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Economics · Financial Management

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Correct answer

Statement 1 and Statement 3 are correct, while Statement 2 is incorrect.

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Answer 1

Statement 1 and Statement 2 are correct, while Statement 3 is incorrect.

Answer 2

Statement 1 and Statement 3 are correct, while Statement 2 is incorrect.

Answer 3

All statements are correct.

Answer 4

Only Statement 3 is correct.

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