Final answer:
The correct answer is 'Operating losses,' as it is not an application of funds. Applications of funds are uses of capital, such as the purchase of assets or repayment of debt, whereas operating losses indicate a need for funds, not the use of them. The correct option is d.
Step-by-step explanation:
The application of funds refers to the ways that funds are used or applied within a business. It implies the usage of capital for various purposes that can enhance the value or operation of the business. In the context of the choices given:
- 'Operating profit' is not an application of funds, rather it is a source of funds.
- 'Purchase of fixed assets' is an application of funds as it represents the business's funds being used to buy long-term assets.
- 'Repayment of loans or debentures' is an application of funds because it involves using available capital to reduce liabilities.
- 'Operating losses' are not an application, but rather a result of the company's operations that reflect a need for funds.
Therefore, the correct answer is d. Operating losses, as this is not an application of funds, but rather the opposite - it indicates a requirement for additional funds.