Technicals · 01
Accounting is the language. Learn it first.
The three statements, how they link, and the transactions that get asked about. Every case is worked in full, with all three statements before and after, and the arithmetic checked in tests rather than asserted.
- 01The three statementsRead an income statement, balance sheet, and cash flow statement and say what each one is for.11
- 02How the statements connectWalk any transaction through all three statements and prove the balance sheet still balances. assumes an earlier lesson14
- 03Accrual vs cashExplain why a profitable company can run out of money, with the entries that make it happen. assumes an earlier lesson9
- 04Working capitalCompute the cash conversion cycle and say why a retailer can grow without raising money. assumes an earlier lesson10
- 05Depreciation and capexTrace a capital purchase from the cash flow statement to earnings over its whole life. assumes an earlier lesson10
- 06Stock-based compensationArgue both sides of the add-back and show what dilution actually costs a shareholder. assumes an earlier lesson9
- 07Reading a 10-KFind the segment data, the real share count, and the numbers that only appear in the notes. assumes an earlier lesson12
Being writtenDeferred taxes, Goodwill and acquisitions.