{"id":57476,"date":"2024-04-16T01:02:40","date_gmt":"2024-04-16T01:02:40","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=57476"},"modified":"2024-04-16T01:02:40","modified_gmt":"2024-04-16T01:02:40","slug":"which-one-of-the-following-concepts-is-used-as-fund-in-the-preparation-of-funds-flow-statement","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-concepts-is-used-as-fund-in-the-preparation-of-funds-flow-statement\/","title":{"rendered":"Which one of the following concepts is used as fund in the preparation of funds flow statement?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Current Assets&#8221; option2=&#8221;Working Capital&#8221; option3=&#8221;Cash&#8221; option4=&#8221;All Financial Resources&#8221; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>C. Cash<\/strong><\/p>\n<p>A funds flow statement is a financial statement that shows how a company&#8217;s cash and cash equivalents have changed over a period of time. It is prepared by analyzing the changes in the company&#8217;s balance sheet accounts, such as cash, accounts receivable, accounts payable, and inventory.<\/p>\n<p>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&#8217;s expenses. The funds flow statement shows how the company has used its cash to finance its operations, investments, and financing activities.<\/p>\n<p>The other options are incorrect because they are not as liquid as cash and cannot be used to pay for the company&#8217;s expenses as easily.<\/p>\n<ul>\n<li>Current assets are assets that are expected to be converted into cash within one year. They include cash, accounts receivable, inventory, and short-term investments.<\/li>\n<li>Working capital is the difference between a company&#8217;s current assets and its current liabilities. It is a measure of a company&#8217;s liquidity and ability to meet its short-term obligations.<\/li>\n<li>All financial resources is a broad term that includes all of a company&#8217;s assets, liabilities, and equity. It is not a specific concept that is used in the preparation of funds flow statement.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Current Assets&#8221; option2=&#8221;Working Capital&#8221; option3=&#8221;Cash&#8221; option4=&#8221;All Financial Resources&#8221; correct=&#8221;option3&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-57476","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which one of the following concepts is used as fund in the preparation of funds flow statement?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-concepts-is-used-as-fund-in-the-preparation-of-funds-flow-statement\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which one of the following concepts is used as fund in the preparation of funds flow statement?\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Current Assets&#8221; 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