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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.
Has accounting become too interesting? In recent years, accounting has become front-page news and has been a key talking point among those connected with world of business. Reg
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