a-4, b-3, c-2, d-1
a-4, b-3, c-1, d-2
a-3, b-4, c-1, d-2
a-3, b-4, c-2, d-1
Answer is Right!
Answer is Wrong!
The correct answer is: A. a-4, b-3, c-2, d-1.
- Increase in fund is a source of funds. This is because when a company increases its funds, it is either by raising capital or by generating cash flow from operations. Both of these activities are considered to be sources of funds.
- Goods purchased on credit is a drain in working capital. This is because when a company purchases goods on credit, it is essentially borrowing money from its suppliers. This increases the company’s liabilities and reduces its working capital.
- Commission outstanding is a source of funds. This is because when a company has commission outstanding, it means that it has earned money but has not yet received payment for it. This is considered to be a source of funds because the company can use the money that it is owed to pay down its debts or invest in new projects.
- Net loss is no flow of funds. This is because when a company makes a net loss, it means that it has spent more money than it has earned. This does not necessarily mean that the company is in financial trouble, but it does mean that it is not generating any cash flow.
I hope this explanation is helpful. Let me know if you have any other questions.