We are in the process of updating some of ASM’s content, and we wanted to provide an opportunity for the ASM community to provide feedback! As ASM has grown, so has the diversity of our user base. This update is an attempt to satisfy a broader audience.
This video is the first update to the Financial Statements Video Series. This video will be paired with PDF notes (available here for a limited time: The Accounting Equation_DRAFT_20221012) to allow subscribers to navigate the content at their own pace. But given the importance of video in educational instruction, we thought it would be a great opportunity to collect feedback from as many interested ASM fans as possible. Feedback received will guide the editing process for future videos.
If you have a moment, please let us know what you think. Any feedback will help us develop a better product!
This video introduces the accounting equation in the context of a three-statement model by pulling more advanced concepts forward. These concepts will be revisited throughout the series, and as each new concept is introduced, it will help build solid foundational knowledge surrounding the three primary financial statement and how they relate to each other.
Why take this approach? The beautiful thing about accounting and the three-statement models it helps inform is that they create a closed system. What affects the income statement also affects the balance sheet, and any change on the balance sheet must be captured by the cash flow statement. If you understand these relationships, then you will also know how cash moves through a business. Ultimately, and certainly as an investor, that is the goal. And that is what we want to teach you at ASM.