Question

How is the term "flow of funds" defined?

a.

Movement of money within a bank

b.

Transfer of economic values from one asset to another or a liability

c.

Cash transactions within a business

d.

Revenue generated from sales activities

Answer: (b).Transfer of economic values from one asset to another or a liability Explanation:The flow of funds is defined as the transfer of economic values from one asset to another or a liability.

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Q. How is the term "flow of funds" defined?

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