Which one of the following concepts is used as fund in the preparation of Funds Flow Statements?
A
Current Assets
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Working Capital
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C
Cash
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
All Financial Resources
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution
The correct option is A Working Capital According to working capital concept, the term 'funds' refers to net workingcapital (current assets-current liabilities). In the funds statement, inflow and outflow of net working capital is displayed.