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Financial and Management Accounting

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1: Consider the following statements: 1. Operational loss is a source of funds. 2.Decrease in working capital is a source of funds. 3. Additions to fixed assets are an application of funds. 4. Fresh introduction of c3pital is an application of funds. Which of the above statements are applicable while preparing the funds flow statement?
A.

1 and 2
B.

1 and 3
C.

2 and 3
D.

1 , 3 and 4
 

Answer : C

Explanation :

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Option: A

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