Lesson 12

Dear Taka,
Thank you for your thirteenth message. My comments follow.
Sincerely,
Prof. Sue Garreis

Dear Professor Garreis,

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?

→ Because U.S. users of accounting information want to know if the company is stable and will grow in the future. Then they can predict dividends and whether debts can be paid in a timely fashion.

Correct.

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 in operating

activities.
Correct.

→ In investing and financing activities there are no differences.
Correct.

3. How do Japanese companies report their changes in cash during the year?

→ Japanese companies also make Statements of Cash Flows.
Correct.

→ Than business use indirect in operating activities. The other two areas are the direct.

4. How easy was this lesson for you?

→ The accounting was somewhat easy.

→ The English was about right.

→ Getting to and using the linked web pages was very easy.

Thank you for the feedback.

I'm waiting for your reply.

Sincerely, Taka

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