Today on the Consumerism Commentary Podcast, Jay Frosting speaks to Joe Knight, co-author of Financial Intelligence: An Illustrated Guide to Knowing What the Numbers Really Mean.
They discuss why and how employees in non-financial roles should learn to read financial statements, largely because accounting relies on a lot of educated guesses and biases.
Table of contents
[00:00] Introduction from Jay Frosting
[00:34] Interview with Joe Knight
– [00:48] Get a good working knowledge of how to read statements
– [02:29] Why approach financial statements education through a comic book?
– [03:53] Teaching through story-telling, including the fraud at WorldCom
– [09:33] Accounting relies on guessing and biases (“cooking the books”)
– [15:24] Many companies fail a basic finance test
– [17:10] Three things that improve companies: training, access to financial data, and profit-sharing
– [19:25] What is and isn’t in the graphic novel version
– [20:02] Why Wall Street is increasingly focused on cash flow
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Updated May 5, 2014 and originally published April 15, 2012. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.