Funds generated from operations, Managerial Accounting

Funds produced from operations, throughout an accounting period, raise working capital by an equivalent amount. The two major components of funds generated from operations are depreciation and profit. Working capital will rise along with the extent of funds produced from operations.

 

The other source of short-term funds the same in character to trade credit is the credit supplied through the tax authorities. This is produced by the interval which lapses among the earning of the profits through the company and the payment of the taxes due on them.

Posted Date: 4/9/2013 3:05:07 AM | Location : United States







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