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.
References in periodicals archive ?
Appendix B on pages 543-544 contains a detailed list of the sources and applications of funds. Note that "deductions that do not require funds," like depreciation, are technically not sources of funds but are noncash expenses.

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