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 April 13, 2016 and originally published April 15, 2012.