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
We always welcome feedback from listeners. If you have any comments for this episode or for any other, or if you have suggestions for future episodes, please leave us comments here or email us at podcast at this domain name.
Theme music by Mindcube.