Stock Market investment: Practical Accounting

Learn practical accounting for stock investors by combining technical and financial analysis to read profit and loss, balance sheets, and cash flow statements, including depreciation, and what shareholders own.

Identify the three core elements of a generic business: cash from customers, costs of doing business, and the remaining amount for the shareholder. Learn how these drive accounting.

Learn how depreciation expense spreads the cost of a machine over its ten-year useful life, illustrating accrual accounting and its impact on profit and balance sheet.

Deduct intangible assets to reveal net tangible assets and tangible equity, safeguarding against overpaying for goodwill and other assets with uncertain future value.

Discover how the balance sheet links to profit and loss, showing how profits increase equity and assets while losses reduce them and liabilities stay the same.

Examine how some firms capitalize losses to delay expenses, hide losses as hidden assets, and depreciate them over years to report higher profits to shareholders.

explain how the cash flow statement works, why cash matters, and how the three sections—operating, investing, and financing—show how profit becomes cash.

Explore investing activities by showing how buying assets like a machine causes negative cash flow and selling assets like a factory causes positive cash flow.

Learn to read the cash flow statement, focusing on operating, investing, and financing activities, and gauge core business health by comparing cash flow to profit.

Explore asset appreciation and its impact on the profit and loss statement, balance sheet, and cash flow, and how selling assets shifts from operating to investing sections.

Explain how a dead inventory write-off removes unsellable stock from the balance sheet, recognizes a loss, and shows no cash flow impact in financial statements.

Understand the difference between profit and cash flow, noting profit reflects past and future earnings while cash flow records actual cash movements, which investors use to judge the company.

Learn how revenue recognition works, including when a purchase order exists versus when delivery occurs, and why revenue is recognized after delivering the machine to the customer.

Analyze Boeing’s financial statements, including the profit and loss, balance sheet, and cash flow statement, to understand operating, investing, and financing activities and their impact on net profit.

Explore the three financial statements, income statement, balance sheet, and cash flow statement, and learn how revenue, expenses, and taxes shape profit, assets, liabilities, and shareholder equity.