The ninth message
Dear Professor Stiner,
It has become quite autumnlike.
How are you getting on?
We had a lot of rain this summer.
My stomach was out of order.
To my disappointment, I couldn't go to
the summer training camp.
I am getting better every day.
I try to eat light food.
Please take care of yourself.
I am glad to make your acquaintance.
Sincerely yours,
Mayo
Dear Mayo,
Hi! Welcome back!
What is wrong with your stomach?
We had very little rainfall and the crops suffered badly.
Our garden was good, giving us about 30 kg. of tomatoes,
plus peppers, cucubers, and pumpkins. We also grow flowers.
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.
Let's review what we have done with balance sheets and income
statements. 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.
>I am glad to make your acquaintance.
[You only say this when you have met some one for the first time.]
Sincerely,
Dear Mayo,
I got this message.
Did you get my answer?
Sincerely,