which of the following is not correct ........

Accountancy (Phase -I & II) Fund flow statement

which of the following is not correct?

for the purpose of funf flow statement, the term 'fund' generally refers to 'net working capital'

Funds flow is a wider concept than the Cash flow

The flow of funds must arise due to external and not internal transactions of the business

The capitalisation of reserves by the issue of bonus shares also involves flow of funds

For the purpose of funds flow statement, the word 'funds' means 'Net Working Capital' which is also known as 'Net Current Assets'.
In the Cash Flow Statement, the concept of ‘funds’ is limited to cash and cash equivalents. Whereas, in the Fund Flow Statement, the concept of ‘funds’ is broader to either all the financial resources or the enterprise's net working capital.
The term funds flow designates the inflows and outflows of funds during a particular accounting period, generally a year. The flow demonstrates the actions of funds in both the directions - inside the business and outside the business. However, the flow of funds must arise due to external and not internal transactions of the organisation.