Question

What is the significance of Fund Flow Statements in relation to current and non-current assets?

a.

It determines the profitability of non-current assets

b.

It shows the conversion of non-current assets into current assets

c.

It focuses on the acquisition of current liabilities

d.

It analyzes changes in the form of current assets

Posted under IC 89 Management Accounting

Answer: (b).It shows the conversion of non-current assets into current assets Explanation:Fund Flow Statements determine and show how non-current assets are converted into current assets through the flow of funds.

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Q. What is the significance of Fund Flow Statements in relation to current and non-current assets?
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