In funds flow statement purchase of fixed assets is ........

General Accounting Principles Fund flow statement

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In funds flow statement, purchase of fixed assets is _________.

sources of cash.

applications of funds.

applications of cash.

sources of funds.

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Explanation:

an increase in value of fixed assets indicates a purchase i.e., an application of fund and a decrease in value of fixed assets (after charging depreciation) shows a sale of fixed assets. It is to be noted that the whole amount of sale proceeds of a fixed assets is a source of fund, and the gross amount paid for purchase of fixed assets is an application of fund.