Important Points for IC 89 - Management Accounting Exam
Page 15 Of 54
Go to:
Funds= Working capital = Current Assets - Current liabilities.
The sources of working capital can be outlined below: Funds from business operation, Incomes from other sources, Fresh introduction of capital or Issue of Additional Capital, Long term borrowings, Sale of non-current assets.
Application of working capital or funds: Losses from business operation, Dividend paid to shareholders, Redemption of Debentures or Preference shares, Repayment of Long term Borrowings, Purchase of Non-current assets.
Cash comprises cash on hand and demand deposits with banks of the corporate office and its all operational units including overseas ones.
Cash equivalents are short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
MODELEXAM® 
www.realsoftinfoplan.com