Question

in fund flow statement repayment of long term loan is​

Answer 1

Answer:

Repayment Of Long-Term Liability: The repayment of long-term loan involves cash outflow and hence it is used for working capital. The repayment of a current liability does not affect the amount of working capital because it entails an equal reduction in current liabilities and current assets.

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Answer 2

Answer:

in fund flow statement repayment of long term loan is​ application of fund

Explanation:

• Because long-term loans require cash outflow for repayment, they are utilised for working capital.
• The amount of working capital is unaffected by the repayment of a current liability since both current liabilities and current assets are reduced equally.

Fund Flow Statements:

• A money flow statement is a document created to examine the factors that led to changes in a company's financial situation between two balance sheets.
• It depicts the inflow and outflow of money during a specific time period, including the sources and uses of that money.
• To display changes in assets and liabilities from the end of one period to the end of another, a third statement is created.
• A fund flow statement is a document that summarizes an organization's financial operations and depicts the flow of funds.

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