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Fund flow Statement helps to measure the different sources of funds. Funds Flow Statement analyses the Sources and Application of Funds while others don't.
They speed up the flow of capital and wages
when working capital decreases it should be written under the head SOURCES OF FUNDS in fund flow statement. and when W/C increases it should be written under APPLICATION OF FUNDS.
they speed up the flow of capital and wages
Answer:Cash is funds. When activities generate cash, it is said these activities are a source of funds. And, if the activities use up cash, it is a use of funds. Note: in the 'Funds flow statement', working capital is used as a measure of funds, which is a broader definition of funds than cash. For example, working capital increases when inventory increases, but cash would remain unchanged.
A distinction between these two statements may be briefed asFunds Flow Statement is concerned with all items constituting funds (Working Capital)for the business while Cash Flow Statement deals only with cash transactions. In other words, a transaction affecting working capital other than cash will affect Funds statement, and not the Cash Flow Statement.In Funds Flow Statement, net increase or decrease in working capital is recorded while in Cash Flow Statement, individual item involving cash is taken into account.Funds Flow statement is started with the opening cash balance and closed with the closing cash balance records only cash transactions.Cash Flow Statement is started with the opening cash balance and closed with ht closing cash balance while there a no opening or closing balances in Funds Flow Statement.
It is the statement of change in financial position, prepared to determine only source and uses of working capital between date of to balance sheet.
They speed up the flow of capital and wages
They speed up the flow of capital and wages
capital market serve as a source of resource to multinationals that wish to source their finances locally, in other words the market provides means of finance to multinational companies, capital market can also serve as an indicator that can attract or repel FDI flow since it serves as a thermometer that measures the economy
A funds flow analysis,,