Dear Professor Stiner,

 

Thank you for your message. I have received the summary

but I haven't finished reading.

 

I have gone through the contents of the cash flows statement

and I found that it was quite difficult to understand. Especially on

the Accounting News In Japan. I wish that you could teach me the

easiest way to understand the contents. Thank you.

 

 

These are the answers for the question:

 

1. The Statement of Cash Flows so important to U.S users of accounting

information because they respond to changes in cash flows and the

stockholders study cash flows to predict dividends and it also helps

creditors decide if they will be repaid.

 

2. The main difference between the indirect and direct methods of

developing cash flow statements is each balance sheet account for

changes caused by cash transactions for direct methods where as for

indirect method it starts with Net Income on the Income Statement and

cash transactions are omitted from income and it's a reconciliation

to Net Income.

 

3. I am not sure about the answers of this question because the scope

of it is too wide.

 

 

 

Sincerely Yours,

 

Wong