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Application of Funds

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Application of Funds
Any of six results of spending money. Spending money can result in a loss, an increase in current assets (other than cash), an increase in non-current assets, a decrease in current liabilities, a decrease in non-current liabilities, or a decrease in shareholders' equity.


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The most useful of the indirect methods are: (1) the Net Worth Method, (2) the Source and Application of Funds Method, (3) the Bank Deposits Method, (4) the Percentage Computation Method, and (5) the Unit and Volume Method.
 
 
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