Question

7) Which of the following are applications of funds?
a. Payment of dividend on share capital
b. Payment of tax
c. Increase in working capital
d. All of the above​

Answer 1

Answer:

d. all of the above

Step-by-step explanation:

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Answer 2

All of the above​ (Option D)

Explanation:

• The meaning of fund is the sum of the money available for a particular purpose. It can be any purpose, for business, for development etc.
• Payment of dividend on share capital, Payment of tax and Increase in working capital, all come under application of funds.
• Payment of dividend on share capital is also called as return of capital.
• It is a payment done by a company to its investors which is drawn from their shareholders equity.
• If the company assets or profits increases, the working capital also increases.

Therefore, option D (all of the above​) is the required answer.