Decrease in working capital appear in fund flow statement in _________ side.

Sources

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Both (A) and (B)

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None of the above

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Solution

The correct option is A Sources
Working capital is current assets less current liabilities. A decrease in the net current assets leads to increase in fund flow which needs to be included. Hence, It appear in sources.

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Similar questions

List-I	List-II
(i) Statement of changes in Working Capital	(a) Cash Flow Statement
(ii) Deferred Tax	(b) Fixed Assets
(iii) Three activities	(c) Funds Flow Statement
(iv) Impairment Loss	(d) Balance Sheet

Q25. Consider the following statements:

1. Hot money is the flow of funds (or capital) from one country to another in order to earn a short-term profit.

2. These speculative capital flows are called ‘Hot money’ because they can move very quickly in and out of markets.

Which of the above statements are correct?

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