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In this section we have tried to develop the concept of flow of funds inside the organization. Starting along with the funds requirement for an organization, we have tried to trace the sources and utilizations of funds.
We tried to examine the significant sources of funds that are: the operations, long-term borrowings, sale of fixed assets and issue of new capital. Likewise, significant uses of funds were traced to acquisition of fixed assets, payment of dividends, repayment of capital and loans. The whole exercise reveals the areas wherein funds are deployed and the source from that they are acquired. At last, we learned how to go about doing the funds flow analysis along with the assist of published accounting information.
We learnt individuality between fund and cash as also cash flow statement and funds flow statement. The significance of cash and cash flow statement was dwelt upon. Our discussion centered on cash flow statement "profit basis" and on "cash basis". We learnt how to go regarding doing the cash flow analysis with the assist of accounting information and at last presenting the cash flows in the form of a "cash flow statement".
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Direct and Indirect costs Recall such direct costs are costs which can be traced particularly to the end product of the production procedure while indirect costs cannot be so
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Handy-Man Services is a repair-service company specializing in small household jobs. Each client pays a fixed monthly service fee based on the number of rooms in the house. Records
how to calculate total costing in weighted average method
Reef Office Supplies is interested in estimating the cost involved in hiring new employees. The following information is available regarding the costs of operating the Human Resour
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