Dear Waka,
Thank you for your eleventh message. My comments follow.
Sincerely,
Prof. S. Stiner
s2396593@slb.cgu.ac.jp wrote:
>
> >Dear Dr M. Susan. Stiner,
> > Thank you for your message.
> >
> >I'm quite all right.
> >Maybe I was lack of sleep, so I take a good sleep.
Maybe I was ill from lack of sleep, so I took a good rest.
> >Thank you for your kindness!
I am glad to hear that you are better.
> >We have no classes during the campus festival. I will go to
> >the university, then enjoy campus festival. (This is my first
> >participation to campus festival.)
> >
> >Own a car is very expence.
Owning a car is very expensive.
I agree!
> >In japan is every year we have an automobile inspection. (A case of used car.
In Japan every year we have an automobile inspection, if you have a used
car.
> >Buy a new car is three years, every year from next time.)
If you buy a new car, the first inspection is three years later. Then,
it is every year after that.
We have auto inspections here too. Every state is different. In
Delaware, the inspection is at the police station. In other states, the
inspectors are regular auto mechanics at a garage. In Delaware, we have
a choice of inspections every one or two years. I pick two years,
because I don't like waiting for hours at inspection time.
In Japan it is easier to get around if you don't have a car. In
Delaware there is almost no public transportation.
> > Answer of homework
> >
> >1) American investors (users) respond to changes in cash flows.
> > Stockholders study cash flow to predict dividents. Cash flow
> > information helps creditors deside if they will be repaid.
> > U. S. creditors will not lend funds if they believe they can't
> > recover them.
> >2) Direct methods are companies must show a reconciliation to
> > Net income in the footnotes. But, Indirect methods are not
> > reconciliation necesary, and Indirect methoda recommended
> > by FASB.
FASB recommends the direct method. But they require extra work (a
reconciliation to net income) if you use it. Most companies don't use
it.
> >3) I'm sorry, I'm not understand.
Waka, Japanese firms do not use cash flow statements. Instead, the cash
activity is reported in what Americans would call a footnote. The
article said that Japan is thinking about developing a statement similar
to the U.S. Statement of Cash Flows. As countries enter markets of
other countries, our different accounting standards are a source of
trouble. All countries are changing their standards slowly. Their
accounting will be more alike. This will make trade and investing with
other countries easier.
> >
> >Sincerely,
> >Waka
The next lesson is at http://udel.edu/~38555/audit.html. We will talk
about the role of theCPA today. We will also talk about the largest
professional organization for CPAs.
--
Prof. M. Susan Stiner