Insights from ‘Financial Intelligence' by Joe + Karen.

You might be surprised to learn that numbers could lie.

1. Accounting & finance are not reality, they are a reflection of reality. The accuracy of that reflection depends on the ability of accountants & finance professionals to make reasonable assumptions & to calculate reasonable estimates. This leads to bias in numbers.

2. When is the revenue or sales recorded? Choose the correct one from the following 4 options:

A. When a contract is signed.

B. When the product or service is delivered.

C. When the invoice is sent out.

D. When the bill is paid.

Find the answer in the book for yourself.

If you sell a product with 12 months maintenance, how much of the Sales or Revenue should be recorded on the books of each month?

‘When is a sale a sale?’ That’s a source of many fraud cases.

To be continued.