Uses of funds flow statement, Accounting Basics

Uses of Funds Flow Statement

This declaration is extremely helpful for policy makers as it traces the movement of funds inside the organization.  Various of the uses include the subsequent:

i) It make clear the financial cost of business operations by providing a whole picture of sources and applications of funds.

ii) It proceeds as an instrument for allotment of resources

iii) It measures the effectiveness of the management in utilizing the funds in the past

iv) It is a examination as to effective or otherwise use of working capital

v) It aids in useful decision making

Posted Date: 10/15/2012 6:24:19 AM | Location : United States

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