Source of Funds:
Revenue or Income on the Income Statement
Decrease in Assets (such as receiving payment on an account)
Increase in Liabilities (such as taking out a loan)
Increase in Equity (such as a stockholder paying capital into the business)

Use of Funds:
Expense or Loss on the Income Statement
Increase in Assets (such as purchasing equipment)
Decrease in Liabilities (such as making a principal payment on a loan)
Decrease in Equity (such as paying a dividend)

 

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