In the context of Funds Flow Analysis the word ldquo funds rdquo is used to define ........

General Accounting Principles Fund flow statement

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In the context of Funds Flow Analysis, the word “funds” is used to define

Total current assets-Total current liabilities

Net Working capital

Both a and b

None of the above

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Explanation:

Flow of funds takes place whenever any transaction brings the change in working capital. Net working capital is ascertained by taking out difference between current assets and current liabiities.

If the transaction results in the increase of amount of working capital its known as 'source of funds' and
if the transaction results in the decrease of amount of working capital is known as 'application of fund'.