Multiple choice

Directions: State whether the following statement is True Or False.

Fund flow analysis shows the position of business as on the closing date of business period.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A funds flow statement covers a period of time, showing the movement of funds between two balance sheet dates. It is not a snapshot of the position on a single closing date.

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