Customer Reviews: Read 25 more reviews...
 Not basic enough, not thorough enough. September 5, 2008
Ratatosk (Europe)
1 out of 1 found this review helpful
This is a somewhat strange introduction to the reading and interpretation of financial statements. The book is not basic enough for newcomers, yet it is not thorough enough for experienced people either.
The main problems I have with this book are 1) the language is sometimes difficult to understand especially in the introductory chapters of the book, and 2) the book gives a lot of "don'ts" but not many "do's" - for instance regarding the measurement of cash flow, the author tells you all the wrong ways of doing it, but neglects to tell you the right way of measuring cash flow.
I have given the book 3 stars because it does have some interesting parts. But if you're new to accounting I would instead recommend getting the book Financial Statements by Thomas Ittelson.
PS: This review is for the Sixth Edition of the book.
 Quick and excellent read! April 23, 2008
Ryan Bushek (Portland, OR USA)
Well written and informative. Book is divided into short and very digestible chapters that focus on various aspects of financial reporting. I found the information on the future of the auditing and financial reporting industry following the downfall of Enron and Worldcom and the passage of Sarbanes-Oxley to be particulary timely and interesting.
Read this BEFORE you take accounting! April 22, 2008
Heldaig (Washington D.C.)
As a first year MBA in the middle of my accounting course I was still struggling. I'd aced Accounting as an undergrad, but only then realized Accounting in undergrad is more akin to book-keeping than financial analysis - BIG difference!
A friend recommended this as an additional book that might help explain things, so I ordered a copy. If only I'd read this before starting the course! It explains, in neat and concise language, many of the concepts with which I'd been having a large amount of trouble. It quickly shows how the balance sheet, income statement, and cash flow statement work together to explain what is happening in the business.
My only complaint is that this book doesn't really discuss journal entries. Perhaps that's intentional and might be one reason why this book works, but given how effective it is at simplifying everything else, I would love to have the benefit on Tracy's insight on this as well.
While this book would never replace a full accounting textbook, it should be required reading before ever touching any major text. By focusing on one single company and set of statements, you can concentrate on the concepts without having to try to understand a different set of numbers. This makes a world of difference when trying to understand how everything works together. Once these basic concepts are understood, more advanced details make more sense and things fall into place much, much faster.
Make no mistake: accounting is a different language that takes a long time to learn. Think of this book as a phrase book you use to learn the essentials before (if you must) tackling how the language works. No, you won't be able to tear apart the books and become a genius investor, but it'll turn on the lightbulb that will let you understand other books.
Very Good~ February 8, 2008
Y. Yi (Iowa city, IA USA)
0 out of 1 found this review helpful
The book is completely new and I received it only a few days after I ordered it.
 Excellent Introduction December 22, 2007
Husam Abu-Haimed (California, USA)
This is a great book to start in financial statement analysis. It is targeted for someone with basic to intermediate background in accounting. The book is concise and well-written. The concepts are explained in a clear and intuitive way.
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