What does application of funds mean?

application of funds meaning in Law Dictionary

declaration that addresses sources and their particular use for liquid funds and working capital.

application of funds meaning in Business Dictionary

That part of statement of sources and application of funds (also called resources statement) which will show sources (eg depreciation, issue of brand new stocks, profit before taxation) and utilizes (such as for example dividend repayment, buy of capital gear, taxation), of working-capital and other liquid funds.