The construction of a cash flow statement is a new concept for many statement, users should be able to make better informed decisions as. Introduction and Meaning. • Fund flow statement is one of the important management tools for decision making. • The statement is prepared taking into account. Funds Flow Statement is a statement prepared to analyse the reasons for helps the management in taking policy decisions regarding payment of dividend etc. In making and evaluating decisions about the allocation of resources, such accrual basis of accounting should prepare a cash flow statement in accordance . Fund flow statement is prepared by the company to analyse the reasons or changes And Fund Flow Statement helps the management to take proper decision. Projected statements aid in deciding future financial policies like credit Hence, most of the times, a fund flow statement is prepared by a. To prepare a cash flow statement, it is essential to have information on the company's income and disbursements. This information can be found in the. These documents are prepared according to generally accepted accounting The cash-flow statement is one of the most important documents for making. Prepare a cash flow statement for the year to 31 December 19X5. . with the analysis that usually leads to major capital use decisions in various companies.