Why is an increase of assets a use of funds and a decrease a source of funds? Why is an increase in Liability and OE a source of funds and an increase a use of funds?
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Why is an increase of assets a use of funds and a decrease a source of funds? Why is an increase in Liability and OE a source of funds and an increase a use of funds?
Why is an increase of assets a use of funds and a decrease a source of funds?
In order to acquire assets the purchase must be funded in some way, thus it is a use of funds. If you sell an asset you gain funds.
Why is an increase in Liability and OE a source of funds and an increase a use of funds?
When you borrow you have increased available funds, when you expend available funds you use funds.
These concepts are simple and require thought to see the implicationss
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