MANAGEMENT

Detailed explanation-1: -Companies may also use funds to acquire non-current assets, such as land and building, office equipment or machinery. It may also use working capital to pay bank loans and bonds/debentures. An additional use of funds is in the case of redemption of redeemable preference shares.

Detailed explanation-2: -The balance sheet shows a company’s assets, liabilities, and owners’ equity at a specific point in time. The income statement shows a company’s revenue and expenses over a period of time, while the cash flow statement provides information on how cash moves in and out of a company.

Detailed explanation-3: -Hence, when there is an increase in total assets in a given period, the liabilities and equity of the company increase by the same amount. A. means that net working capital is also increasing. Net working capital is current assets of a company minus its current liabilities. It deals with a portion of the total assets.

Detailed explanation-4: -Fund accounting is a system of accounting used by non-profit entities to track the amount of cash assigned to different purposes and the usage of that cash. The intent of fund accounting is not to track whether an entity has generated a profit, since this is not the purpose of a non-profit.