The correct answer is: C. Cash
A funds flow statement is a financial statement that shows how a company’s cash and cash equivalents have changed over a period of time. It is prepared by analyzing the changes in the company’s balance sheet accounts, such as cash, accounts receivable, accounts payable, and inventory.
The concept of cash is used as fund in the preparation of funds flow statement because it is the most liquid asset and can be used to pay for the company’s expenses. The funds flow statement shows how the company has used its cash to finance its operations, investments, and financing activities.
The other options are incorrect because they are
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