Fund - definition
The term 'fund' has been defined in a number of ways. Some financial experts interpret 'fund' as 'cash' only and fund-flow statement - prepared on this basis is called a cash flow statement.
In this type of statement only inflow and outflow of cash is taken into account. On the other hand, some experts interpret 'funds' as money value in whatever form it may exist in the company.
It is conceived as 'all financial resources' and it extends the concept include all the current assets or financial resources. Thus, the narrow definition of fund, such as cash- flow, leads us to the concept of hard cash It omit, such items which do not directly affect cash or working capital.
But in a broader sense, the assets of a firm represent the net uses of funds and its liabilities and net worth represent net resources.