Learn / Accounting Go to Overview 1. The income statement in depth 2. The balance sheet, Pro 3. The cash flow statement, Pro 4. How the three statements link, Pro 5. Walking a change through the statements, Pro 6. Working capital, Pro 7. Harder walk-throughs, Pro Flashcards, 0 of 26 reviewed Basic quiz Advanced quiz Terms Accounting
0 of 7 lessons
0 of 26 cards The three statements line by line, how they connect, and how to walk any change through all three without losing the balance. Every technical round starts here.
B Basic4 lessons 1 The income statement in depth What each line on the income statement means, when revenue and expense are recorded, and how bankers clean it up before they use it. 9 min 2 The balance sheet A snapshot of what the company owns, what it owes, and what belongs to shareholders on one date. The two sides always match, and knowing why is the key to every walk-through. 9 min 3 The cash flow statement Starts with net income, fixes it into cash, then adds investing and financing. Its last line, the change in cash, is the one number the balance sheet cannot do without. 9 min 4 How the three statements link Net income feeds the cash flow statement and retained earnings. The cash flow statement's ending cash feeds the balance sheet. Learn the handful of links and every walk-through becomes mechanical. 9 min Q Basic quiz 10 questions, 80% passes A Advanced3 lessons 5 Walking a change through the statements The interview staple: one line changes, and you trace it through the income statement, the cash flow statement, and the balance sheet. Do it in that order, every time. 12 min 6 Working capital The cash a business ties up in receivables and inventory, net of what it borrows from suppliers. Growth eats it, and how fast a company turns it over says a lot about the business. 10 min 7 Harder walk-throughs Asset write-downs, stock-based compensation, deferred revenue, and goodwill impairment. The same three-step method, with one wrinkle each. 12 min Q Advanced quiz 10 questions, 80% passes