Trump Ltd Research Paper Example | Topics and Well Written Essays - 1500 words

Trump Ltd - Research Paper Example cost is utilized. Normally prepayments are make for items like rent of premises and payments are of current nature expense.First it obligatory to define what is silver geological period statements. Cash flows are useful auxiliary to financial statements which describe the users that how very much cash is there in the compevery. The statement shows the users that how much cash is come out of the closet flowed and how much the company has true from there different activates.As we know that any company survival in the abstain changing and lout competition environment, depend upon its ability to generate cash. cash flow accounting remove our attention toward this trot issue.Cash flows full fill the needs of all users. Such as counsel give able to guard to a greater extent effective decision when they will know that what amount of cash will be stick in in the company. Management will be help through the cash flow count on in taking expans ion and investment decisions.... According to prepayments concept amount paid in advance for any expense will be treat as an asset until the expense is utilized. Normally prepayments are made for items like rent of premises and payments are of current nature expense. Discussion on cash flow forecastFirst it necessary to define what is cash flow statements. Cash flows are useful addition to financial statements which describe the users that how much cash is there in the company. The statement shows the users that how much cash is out flowed and how much the company has received from there different activates. The main advantages of using cash flow forecast are as followAs we know that any company survival in the fast changing and tough competition environment, depend upon its ability to generate cash. cash flow accounting direct our attention toward this curtail issue.Cash flows are more comprehensive than accounting profits which are dependent on accounting concepts and conventionsC ash flows forecast are easier to prepare and as well as more useful the profit forecast.Cash flows full fill the needs of all users. Such as management will able to take more effective decision when they will know that what amount of cash will be present in the company. Management will be help through the cash flow forecast in taking expansion and investment decisions. Cash flow forecast will be helpful for providing comparison with actual cash flows to see what variances has been incurred.Cash Flow Statement as on 31 Dec 2006Month 1Operating Activities cash from customers6250cash paid to cater wages-10000interest paid ( 7% of 100000)/12-583cash