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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
We are here left along with statement (d) that defines an accountant as a professional and emphasize his pre-occupation within management of information for internal utilization as
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Why is it important for accounting information to be accurate and timely?
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