The three financial statements are the income statement, the balance sheet, and the cash flow statement. In the video series available on ASM, the financial statements are introduced in the context of building a three-statement model, which provides the foundation for most in-depth financial analysis and valuation work. The objective is not simply to explain what they are, but to demonstrate how they link to each other.

I studied some accounting in college, but there was a problem. Accounting was introduced as the language of business, but the approach made it difficult to see the forest for the trees. It wasn’t until I built my first three-statement model as an investment banker that I felt I truly grasped the big picture. It was a lightbulb moment, which is why I choose to teach it this way on ASM.

Over the years I have heard similar stories from many of the thousands of students that have worked through our content at ASM. And as the testimonial below shows, it may feel like a lot of information initially. But I promise it will come together by the conclusion of this series.

Testimonial: “Having had several accounting courses, initially it seemed odd viewing an entire model in one Excel spreadsheet. It seemed like too much information in one place or on one page and it made me a little uncomfortable, but by the end of the 2nd section I found this to be the most efficient manner that I’ve ever been taught Accounting.”

I would encourage you to review this series even if you have had previous exposure to the three primary financial statements. 

The post on learning mentioned in the video is available at this link: How to Learn.