BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -When a business acquires a fixed asset, it is recorded on the balance sheet-usually as property, plant and equipment (PP&E). Fixed assets are initially capitalized on a company’s balance sheet, and then periodically depreciated. Depreciation is found on the balance sheet, cash flow statement, and income statement.

Detailed explanation-2: -A fund flow statement reveals the reasons for these changes or anomalies in the financial position of a company between two balance sheets. These statements portray the flow of funds-or the sources and applications of funds over a particular period.

Detailed explanation-3: -A Funds Flow Statement thus helps identify liquidity blockage and assists in planning an effective dividend policy. This statement also serves as a financial guide for a company. It brings out the financial issues that a concerned company could face in the near future.

Detailed explanation-4: -Sources of funds include cash farm receipts, capital asset sales, increases in liabilities, outside equity capital infused into the business, and net non-farm cash income. The increase in total liabilities is derived from the beginning and ending balance sheets.