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Standard XII
Business Studies
Capital Budgeting and Its Importance
Stock in the ...
Question

Stock in the beginning results in __________.

A
A source of funds
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B
An application of funds
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C
No flow of funds
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D
Change in current assets
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Solution

The correct option is C An application of funds
Application of funds is a fund statement which shows sources and uses of the working capital and other liquid funds Hence, stock in the beginning results in an application of funds.

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