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Accounting for Kids - Book 2

by Ryan Semerau

Ages 7-12AccountingFinance

The second book in the Accounting for Kids series. Teaches how to read, analyze, and interpret financial statements - revenue analysis, EBITDA, financial ratios, comparing companies, spotting red flags, budgeting, and cost accounting. Turns number-reading into real understanding.

16 chapters · 76 lessons · first 6 free

IntroductionFree

1 · Reading the Story

1.1 · Numbers Tell a StoryFree
1.2 · Start with the Big PictureFree
1.3 · Comparing PeriodsFree
1.4 · Asking "Why?"Free
Chapter 1 TestFree

2 · Revenue Analysis

2.1 · Is Revenue Growing?Free
2.2 · Where Does Revenue Come From?🔒
2.3 · Revenue Concentration🔒
2.4 · Revenue vs. Growth at Any Cost🔒
Chapter 2 Test🔒

3 · Cost of Goods Sold and Gross Profit

3.1 · Cost of Goods Sold (COGS)🔒
3.2 · Gross Profit🔒
3.3 · Gross Margin🔒
3.4 · Why Gross Margin Matters🔒
Chapter 3 Test🔒

4 · Operating Expenses

4.1 · What Are Operating Expenses?🔒
4.2 · Selling, General, and Administrative (SG&A)🔒
4.3 · Operating Income🔒
4.4 · Watching Operating Expenses Grow🔒
Chapter 4 Test🔒

5 · EBITDA

5.1 · What Is EBITDA?🔒
5.2 · Why Strip Those Things Out?🔒
5.3 · How to Calculate EBITDA🔒
5.4 · EBITDA Isn't Perfect🔒
Chapter 5 Test🔒

6 · Net Income and the Bottom Line

6.1 · Net Income: What's Really Left🔒
6.2 · From EBITDA to Net Income🔒
6.3 · What Happens to Net Income🔒
6.4 · Profit Margins🔒
Chapter 6 Test🔒

7 · Reading the Balance Sheet

7.1 · Current Assets🔒
7.2 · Long-Term Assets🔒
7.3 · Current vs Long-Term Liabilities🔒
7.4 · A Strong Balance Sheet🔒
Chapter 7 Test🔒

8 · Financial Ratios - Liquidity

8.1 · What Are Financial Ratios🔒
8.2 · Current Ratio🔒
8.3 · Quick Ratio🔒
8.4 · Working Capital🔒
Chapter 8 Test🔒

9 · Financial Ratios - Profitability

9.1 · Margin Ratios🔒
9.2 · Gross Margin and Operating Margin🔒
9.3 · Net Profit Margin🔒
9.4 · Return on Equity (ROE)🔒
Chapter 9 Test🔒

10 · Financial Ratios - Efficiency and Leverage

10.1 · Inventory Turnover🔒
10.2 · Accounts Receivable Turnover🔒
10.3 · Debt-to-Equity Ratio🔒
10.4 · Using Ratios Together🔒
Chapter 10 Test🔒

11 · Comparing Companies

11.1 · Why Compare🔒
11.2 · Industry Norms🔒
11.3 · Size Differences🔒
11.4 · Apples to Apples🔒
Chapter 11 Test🔒

12 · Red Flags and Warning Signs

12.1 · Declining Margins Over Time🔒
12.2 · Revenue Growing, Cash Shrinking🔒
12.3 · Debt Growing Faster Than Business🔒
12.4 · Inventory Piling Up🔒
Chapter 12 Test🔒

13 · Budgeting and Forecasting

13.1 · What Is a Budget🔒
13.2 · Building a Simple Budget🔒
13.3 · Forecasting: Looking Ahead🔒
13.4 · Variance: Budget vs Actual🔒
Chapter 13 Test🔒

14 · Cost Accounting Basics

14.1 · Direct vs Indirect Costs🔒
14.2 · Allocating Overhead🔒
14.3 · Break-Even Point🔒
14.4 · Using Cost Information for Decisions🔒
Chapter 14 Test🔒

15 · Accounting in the Real World

15.1 · Who Does Accounting in Real Life🔒
15.2 · Auditing: Checking the Checkers🔒
15.3 · Ethics: Honesty in Accounting🔒
15.4 · You Can Read the Numbers Now🔒
Chapter 15 Test🔒

What you'll learn

✓How to read financial statements and spot trends
✓What gross profit, operating income, and EBITDA mean
✓How to calculate and interpret financial ratios
✓How to measure liquidity, profitability, and efficiency
✓How to compare businesses of different sizes fairly
✓How to spot red flags and warning signs in financial data
✓How to build a budget and compare it to actual results
✓What direct and indirect costs are and how to allocate them
✓What the break-even point is and why it matters
✓How accounting works in real businesses and careers

How to use this workbook

15 chapters, designed for one chapter per week (4 short lessons per week plus a chapter test). Each lesson takes about 15-20 minutes - read the lesson, talk it over with the AI tutor, then answer a few short questions in your own words.

Prerequisites

Accounting for Kids Book 1 (Recording, Organizing, and Reporting). You should understand transactions, the accounting equation, debits and credits, journals and ledgers, and the three financial statements before starting this book.