Section outline

  • We start with a brief review of the basic accounting principles that are necessary for financial analysis. Then we turn to the question of non-operating assets and how they affect performance analysis. Finally, we introduce the so-called common-size financial statements.

    • This section's reading assignment and review questions are listed below. The first part of the section deals with the general accounting framework.

    • Reading: Accounting Framework Book
    • Quiz: Accounting Framework
      Students must
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      The second part discusses how to compile and use common-size financial statements.

    • Reading: Common-Size Financial Statements Book
    • Quiz: Accounting Framework
      Students must
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      Receive a grade