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What are the short-term and long-term application of funds?

Financial Management, Notes

What are the short-term and long-term application of funds?

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Short term application of funds

 

  1. Premium paid on redemption of preference shares & debentures.
  2. Extra ordinary payments & non-recurring losses.
  3. Repayment of temporary loan secured & unsecured.

 

Long term application of funds

 

  1. Redemption of preference shares & debentures.
  2. Purchase of fixed assets.
  3. Purchase of investments.

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