hat is a Fund?
Fund
Meaning
Money that is set aside for a particular purpose.
To provide money for paying off the interest or principal of (a debt).
To finance, using long-term debt or Capital.
Synonyms
Finance
Support
Back
Furnish
Fund = Capital
We use the phrase "We need additional funds" to mean we need additional capital whether be it for acquiring assets, clearing liabilities or for meeting expenses.
This indicates that Fund means Capital.
All capital of the organisation whether owned or loaned is capable of being called Fund.
Fund is Capital freely available for use
A Fund by its nature would be capital kept aside with a purpose. The fund should be capable of being used for the specified purpose at any time.
Fund, in the topic Funds Flow Analysis, is a general purpose fund. It represents capital resource that would be available to the organisation for general purposes. It would be capable of being used in any manner the organisation prefers without any restriction/hindrance.
Fund is Capital supported by Current Assets
Every rupee of a liability/capital is supported by a rupee of an asset. Every rupee of an asset is financed by a rupee of a liability.
Consider a new business that has been started with a capital of Rs. 2,00,000 brought in cash. The organisation's Balance Sheet immediately after this first transaction would be:
Balance Sheet of M/s ___ as on 31st December __
Liabilities Amount Assets Amount
Capital 2,00,000 Cash 2,00,000
2,00,000 2,00,000
Liabilities supported by Assets : Capital is supported by cash
Assets financed by Liabilities : Cash is financed by Capital
The next day, Furniture worth Rs. 1,00,000 and Stock Worth Rs. 50,000 have been bought for cash. The Balance Sheet after these transaction would be :
Balance Sheet of M/s ___ as on 31st December __
Liabilities Amount Assets Amount
Capital 2,00,000 Cash
Furniture
Stock 50,000
1,00,000
50,000
2,00,000 2,00,000
Liabilities supported by Assets : Capital is supported by Cash, Furniture and Stock
Assets financed by Liabilities : Cash, Furniture and Stock are financed by Capital
Capital/Cash is employed in purchasing Assets
Since Cash used in purchasing Furniture was financed by Capital, we can say that Furniture is financed by Capital. Whereby, we say that capital is employed in purchasing furniture.
On converting an asset into a new one, the liability that was being supported by the replaced asset would now be supported by the new asset. Therefore, on employing capital, the assets supporting capital change.
Capital that can be employed
To be able to employ capital for any purpose, the asset that is supporting it should be easily convertible.
Fund is Capital supported by easily convertible Assets
Fund is capital freely available for being used in any which way the organisation intends i.e. for long term or short term needs. To enable such usage, funds (capital that we call funds) should be supported not just by assets which are convertible but by assets that are easily convertible.
Current Assets are easily convertible
Current
Meaning
Belonging to the present time.
Not overdue; occurring this period.
Synonyms
Present
Existing
Recent
In Progress
Current Assets are assets that are capable of being liquidated in a time span of a year or less. They represent easily convertible assets.
Fund is capital supported by easily convertible assets
+ Current Assets are easily convertible assets.
? Fund is capital supported by Current Assets
Funds exclude Current Liabilities
Current Liabilities
Current liabilities are liabilities that are to be repaid/cleared within the near future (a short period of time). Current liabilities are considered to be supported by current assets as they are similar in nature i.e. both of them have a short life span (a year or less). Current liabilities have a charge on current assets.
Fund is capital that is freely available for use for any purpose the organisation intends without any hindrance/restriction.
All the capital that is supported by current assets cannot be said to be freely available for use without any hindrance. We do not consider Current liabilities to be representing capital that is freely available for use, since they are to be repaid within a short time span
Therefore, capital supported by current assets excluding current liabilities would only be considered as fund.
Fund = Current Assets - Current Liabilities
Fund is freely available capital
+ Fund is capital supported by Current Assets
+ Fund is capital supported by current assets excluding current liabilities
[Current assets in excess of those supporting current liabilities support funds.]
? Funds = Current Assets - Current Liabilities
Fund = Working Capital
Excess of Current Assets over Current Liabilities is Working Capital
? Working Capital = Current Assets - Current Liabilities.
? Fund = Working Capital
What is Funds Flow?
Flow
Meaning
To move or run smoothly with unbroken continuity like in the case of a fluid.
Something that resembles a flowing stream in moving continuously
Synonyms
Stream
Gush
Course
Funds Flow
Fund being working capital, Funds flow indicates the flow of working capital between two points of time. It involves information relating to the various transformations undergone by working capital (i.e. the changes that have taken place in working capital) during the period involved between the two points of time.
Every change in working capital is associated with (or is on account of) a flow either an inflow or an outflow. Thus, funds flow involves information relating to the inflows and outflows that resulted in a change in working capital between the two points of time.
When do we say that there is a flow of fund?
Fund (Working Capital) in an Organisation is like water in a reservoir. The Fund is analogous to water and the reservoir to the organisation.
There is a change whenever there is a flow
There would be a change in fund (working capital) whenever there is a flow (in/out) of fund.
An inflow would result in an increase and
An outflow would result in a decrease.
There is a flow whenever there is a change
A change in fund (working capital) in the organisation is an indication of flow of fund.
An increase would indicate an inflow and
A decrease would indicate an outflow.
Hidden/Masked flows
When there is an inflow followed by an outflow of the same magnitude, there may not be a change in fund (working capital). An inflow would result in an increase in fund which would be set off by an outflow resulting in a decrease. Since the magnitude is the same, after the two transactions, the fund seems to be unchanged.
In such situations, to notice the change, we will have to break down the transactions into two instead of viewing them in total.
A sponsorship proposal has to include a case and a remedy. Proposals get good funding because they have a plausible justification, resolution strategy and needs analysis.
Federal funding is typically funding using our tax dollars. Private funding is exactly what it says "private funding" or funding through a hedge fund or investor.
Full funding
Some examples for capital funding companies include Optimum Capital Funding and DMC Capital Funding. Depending on your business, you can even approach crowd funding by using the KickStarter website.
Yes. The word funding is a noun.
A sponsorship proposal has to include a case and a remedy. Proposals get good funding because they have a plausible justification, resolution strategy and needs analysis.
Sandra G. Leggat has written: 'Analysis of the impact of the alternate funding plan at the hospital for sick children department of paediatrics'
Federal funding is typically funding using our tax dollars. Private funding is exactly what it says "private funding" or funding through a hedge fund or investor.
A sponsorship proposal has to include a case and a remedy. Proposals get good funding because they have a plausible justification, resolution strategy and needs analysis.
By Reserch funding
HOW CAN I RECEIVE FUNDING FOR THIS GRANT HOW CAN I RECEIVE FUNDING FORTHIS GRANT
Public funding is funding that is provided by the government. Many social programs designed to help people receive public funding.
I believe 'zeroed funding' means that promised/requested funding is taken away.
Truthfully obtaining funding for a small business is not easy as there are many options out there which you may or may not qualify for depending on various factors. My suggestion is finding a business consultant that will review what you need the funding for, how much you need in funding, and what sort of personal finances you are willing to put up. Generally, within a one hour conversation conversation they should be able to tell you what sort of business funding you should go after and how long it will take to obtain it. I added a website to a group of funding consultants you should talk with as right now they are offering free consultation and a free business analysis.
Stewart Wood Dyess has written: 'A history and analysis of library formula funding in Texas public higher education' -- subject(s): Academic libraries, Finance
Full funding
The funding, of course!