Concept of flow of funds, Accounting Basics

Concept of Flow of Funds:  It refers to the 'Change in Funds' or 'Change in Working Capital'.  That is, any increase or decrease in Working Capital. In business, daily, numerous transactions get place.  a few of these transactions increase the Funds while others might be decrease the Funds and a few may not make any transform in the Funds position. If a deal results in increase of Funds, it will be defined as a 'Source of Funds'.  In case a transaction results in decrease of Funds, it will be taken as an application or use of Funds.  In case a transaction does not make any change in the funds position that existed just before the occurrence of the transaction, it is supposed that it is a non-Fund transaction.

Posted Date: 10/15/2012 6:18:50 AM | Location : United States

Related Discussions:- Concept of flow of funds, Assignment Help, Ask Question on Concept of flow of funds, Get Answer, Expert's Help, Concept of flow of funds Discussions

Write discussion on Concept of flow of funds
Your posts are moderated
Related Questions
Assume that the following are independent situations recently reported in the Wall Street Journal. 1. National Electric 8% bonds, maturing January 28, 2013, were issued at 112.16.

Q. Define Current assets? Current assets are cash and other assets that a business is able to convert to cash or uses up in a relatively short period one year or one operating

Cash  Flow Analysis:   As per the Institute of Cost and Works Accountants of India (AICWAI), a Cash Flow Statement is a declaration setting out the flow of cash under different

in cash flow statement, deductions from cash expences and payments to creditor. how do you get this answer

Hi i just need the solution of case study.

Q. Explain about Purchase discounts? Purchase discounts frequently companies purchase merchandise under credit terms that permit them to deduct a stated cash discount if they p

Trend Analysis : In the relative and common size financial statements, the data cannot be identified whether it is abnormal or normal as an essential standard is absent.  To con

Q. Explain about matching principle? The matching principle need that expenses incurred in producing revenues is deducted from the revenues they generated during the accounting

Classify the following items as (a) deferred expense (prepaid expense), (b) deferred revenue (unearned revenue), (c) accrued expense (accrued liability), or (d) accrued reven