Generally the term fund is used to mean the difference between?
Correct answer: A. Current assets and current liabilities
- A. Current assets and current liabilities
- B. Profit and loss A/C and Balance sheet
- C. Current assets and non-current liabilities
- D. Current liabilities and non-current liabilities
Explanation
In funds-flow analysis, “fund” generally means net working capital, calculated as current assets minus current liabilities. It measures the amount of short-term resources remaining after short-term obligations.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Financial Statements
Financial statements present a business's financial performance and position through the income statement, statement of financial position, cash flow statement and changes in equity. Questions involve preparing and interpreting these statements, adjusting entries, depreciation, closing inventory, accrued and prepaid items, and distinguishing profit from cash flow.
Practise Financial Statements
128 free Financial Statements MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Financial Statements questions
Payments received in advance from a customer for a contract can be__________?
If a company has contingent liabilities, they appear in the__________?
Recent developments have made much of a company's inventory obsolete. This obsolete inventory should be?
Cash received from debtors would be deemed as___________of funds.
Revenue receipts are shown in___________?
Capital expenses are shown in___________?