1. Depreciation is a source of funds- FalseExplanation: Depreciation is a process of allocation of cost. It cannot be a source of funds. At best by charging adequate depreciation, the taxable profit may be legally reduced. The tax burden may be reduced. It may help to conserve working capital. It may indirectly regulate the fund position but cannot increase funds. 2. Major source of working capital in the long run, is profits form operations- TrueExplanation:Working capital is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entities. The major source of working capital is the company's profits earned from its day-to-day operations. For example, the collection of receivables. 3. Any transaction that increases working capital is a source of funds- TrueExplanation:Companies always seek sources of funding to grow the business. Funding, also called financing, represents an act of contributing resources to finance a program, project, or need. Funding can be initiated for either short-term or long-term purposes. The different sources of funding include Retained earnings, Debt capital, Equity capital, etc. Any transaction whose benefit outweighs the cost is a source of fund for the firm. 4. Profits earned from non-operating activities is added to net profit while calculating profits from operations- TrueExplanation:Non-operating income is the portion of an organization's income that is derived from activities not related to its core business operations. It can include dividend income, profits or losses from investments, as well as gains or losses incurred by foreign exchange and asset write-downs. Profits earned from non-operating activities are added to net profit while calculating profits from operations.