An alternative teaching of an involved topic, aimed at beginners to learn financial statements and the fundamental accounting operations of a business. I appreciated the author's creativity in trying to explain financial and accounting concepts through illustrations. If you have sufficient experience in business, this book might be too beginner level and can be skipped. Early year business school students or employees who haven’t taken business schools seem to be the target audience.
Motivations to Read
I'm reading this to try to build better intuitions around reading financial statements.
3 Reasons to Read
- For students studying finance or accounting.
- If you're a visual learner who wants to understand the numbers behind accounting.
- Concise structure on specific financial topics.
Notable Quotes
Three common myths create resistance towards numbers: Accounting requires good mathematical skills. False! You can always use software and calculators to do the math. Accounting is a way of thinking and understanding the logic behind a business.
“Profitability can be fixed over time if the business has firm roots, but cash problems are usually a sign that the end is coming. Cash is harder to manipulate. While the income statement uses many estimates and can be subject to deliberate manipulation, cash is easily measured because it is backed by what's in bank accounts.”
Notes for this book are still being transcribed.
