Question

What is the difference between Other Financial sources and Other Finacial Uses from government accounting? I am having trouble understanding the difference. Please explain the concept and be specific

Answer 1

Other financial resources: it means to those sources from where company collect the fund to run its activities

Like government company can use following source to raise money

1) Equity share capital

2) long term bank loan

3) debenture

4) short term loan

5) sale of fixed assets

Other financial uses: As we understand from where the company raise fund ,now company uses these fund to run their business activities these are called other financial uses

So some example of other financial uses are

1) production of goods

2) purchase of fixed asset

3) use as working capital