Multiple choice

The funds flow statement does not present

  1. estimation of working capital requirement

  2. uses of working capital

  3. sources of working capital

  4. net change in working capital
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A funds flow statement shows the sources and applications of funds, but it does not provide an estimation of future working capital requirements; that is a budgeting or planning task.

Keep practicing — related questions