Dear Hata,

Welcome back from your summer break! It sounds as if you used your time

well. My comments follow.

Sincerely,

Prof. S. Stiner

Hata wrote:

>

> >Dear Dr. M. Susan stiner.

> > I haven't see you for a long time.

　I haven't seen you for a long time.

> >Did you have in the summer?

　Did you have a good time in the summer?

> >I had going home to one week.

　I went home for one week.

> >It's a long time since I saw my parents.

> >A week after, I trained at a camp the basketball club.

　After my visit to my parents, I trained at a camp run by the basketball team.

> >Then on Sunday and a holiday in September,our basketball

> >club had a game.

　Our basketball team had games on Sundays and the September holiday.

> >My summer days is basketball days.

　My summer days were basketball days.

> >I am tired,but our basketball besides a game in October.

> >I think so hold fast to the end.

I am not sure what you mean in these two sentences, Hata. I think you

mean that you are tired from all the summer basketball, but you will

continue to play and enjoy basketball until the end of the season. When

does your season end?

　After this, I wish to study lessons.

> >Sincerely,

> >Hata

It is time to resume our talks about accounting, American style. Before

break, we talked about two of the most important financial statements.

These are the balance sheet and the income statement.

The balance sheet shows the company's financial picture on the last day

of the reporting period. The income statement shows the company's

profit, or loss, for the entire reporting period.

Both the income statement and the balance sheet use the accrual method

of accounting. Under the accrual method, income and expenses are

recognized, regardless of whether cash is received or paid.

Cash is such an important asset to a company that American accounting

information users want to know all about it. We have a formal financial

statement, the Statement of Cash Flows, that tells us much about the

cash received and spent by the company. Next week, we will talk about

that statement.