Question
In which situation flow of funds does not
happen?Solution
In accounting, the flow of funds typically occurs between items of the same nature. Current assets and non-current assets are different categories, so the flow of funds does not happen between them. The same principle applies to other options as well. For instance, the flow of funds happens between current assets and current liabilities (a), between non-current liabilities and non-current assets (c), and between current liabilities and current assets (d).
A shopkeeper marks his goods at 40% above the cost price and gives a discount of 20%. Find his profit percentage.
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