lesson13
Dear Nao,
Thank you for your thirteenth message. My comments follow.
Sincerely,
Prof. Sue Garreis
Dear Prof G,
Thank you for your reply and corrections of my English.
I will answer your last question.
Homework
1.Why is the Statement of Cash Flows important to U.S. users of accounting information?
→American investors want to receive the most dividends.
American creditors want the debt to be paid on time.
It is the same in Japan.
2.Look at the table that compares the direct and indirect methods.
What is the main difference between the indirect and direct methods:
a.in operating activities? b.in investing activities? c.in financing activities?
→The main difference between the indirect and direct methods is operating activities.
And the main difference between the indirect and direct methods in the operating activities section is that the direct method analyzes all non-cash accounts to see the source of cash in and cash out. The indirect method increases or decreases the accrual basis net income to adjust for non-cash items included in it.
3.How do Japanese companies report their changes in cash during the year?
→Japanese companies report using the indirect method.
I'm waiting for your reply.
Sincerely. Nao
October 13 was Friday the thirteenth in the US. Thirteen is an unlucky number to Americans. When a Friday is the thirteenth of the month, be careful! That could be a very unlucky day. Here is a website that tells the history of Friday the thirteenth:
http://people.howstuffworks.com/friday-thirteenth.htm/printable
The next lesson tells about what CPAs do. The lesson also tells about the main Society for CPAs, the American Institute of CPAs (AICPA). The lesson is at: http://www72.homepage.villanova.edu/susan.stiner/cgu/CPArole06.htm