Pembahasan Ujian PAI: A40 – No. 9 – Agustus 2019

Sources of Funds – Uses of Funds = Net Change in Cash

Sources of cash a company:

• A decrease in an asset account (selling an asset for cash)
• An increase in a liability account (taking out a loan)
• An increase in stockholders’ equity (issuing common stock)
• A receipt of revenue (selling policies)
• Net income

Uses of funds a company:

• An increase in an asset account (purchasing an asset)
• A decrease in a liability account (paying off a loan)
• A decrease in stockholders’ equity (retiring or repurchasing a company’s own common stock)
• A payment of expenses
• A net loss

• A receipt of revenue (A) : Sources of Funds
• Selling an asset for cash (B) : Sources of Funds
• Repurchasing a company’s own common stock (C) : Uses of Funds
• Net income (D) : Sources of Funds
• Taking out a loan (E) : Sources of Funds

Sehingga Net Change in Cash = A+B-C+D+E

^[1] Mulligan, E. and Stone, G. (1997). Accounting and financial reporting in life and health insurance companies. Atlanta, Ga.: Life Management Institute, LOMA.