GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The fund as used in funds flow statement means
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Cash
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Current assets
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Current liabilities
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Current assets minus current liabilities
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Explanation:
Detailed explanation-1: -The statement shows the reduction in working capital (i.e., when current assets are less than current liabilities). 7.
Detailed explanation-2: -The term “fund” as used in fund flow analysis means Excess current assets over current Liabilities.
Detailed explanation-3: -It is calculated by deducting interest income and gains on asset sales from net income for the period and adding interest expense, depreciation, and losses on asset sales.
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