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Question 27 of 34

Q.Which one of the following is not a function of Fund Flow analysis ?

(a) financial planning of a business concern
(b) liquidity and solvency of a business concern
(c) preparation of budgets of a business concern
(d) credit worthiness of a business concern
Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2025MCQ· 1mImportance★★★★★
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Determining liquidity and solvency is not a function of fund flow analysis.

Fund flow analysis (a tool of Financial Statement Analysis, TN HSC Commerce) explains the movement of funds — the sources and applications of working capital between two balance-sheet dates. Its genuine functions include helping in financial planning, in the preparation of budgets, and in judging the credit worthiness of a concern.

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