Do you know the difference (in purpose) between managerial accounting and financial accounting? What about the difference between return on equity and rate of increase in stock price (assuming that the company is publicly traded)? Is the U.S. budget deficit more like an expense or a liability? How about the U.S. debt? In other words, learn basic accounting. (On Hacker News most participants have not.) Whole Foods and Apple are both very successful business. One has very high "variable cost" (or as the economists say, "marginal cost" or "cost at the margin") and consequently their marginal income or "profit margin" is much lower. Which one is it? If you own stock in some company, do you care more about its marginal income's being high or its return on equity's being high?
Each of these questions has an unambiguous answer that all accountants and informed businessmen will agree on.
How might one go about learning basic accounting? Any good textbooks you recommend?
I am learning as much as possible about effective organizations, specifically large corporations and their respective businesses.
My goals are to start a successful business and to really develop the skills needed to be a great executive.
If any of you on LessWrong have studied this area I would greatly appreciate your input.
My current approach has been to read some highly recommended books and also to read as much as I can about how modern day CEOs and founders start and run their companies. I worry that some of this information is more for entertainment than for obtaining knowledge. I am also starting a company with a friend to try and put a lot of this information into practice.
I've also been using the "execute by default" idea, which, has helped immenseley in actually making progress and I have already felt that practicing this changes the way I approach problems, mostly for the better.
Some books I'm reading:
* Management by Peter Drucker
* The Effective Executive by Peter Drucker
* The Personal MBA by Josh Kaufman
* The Lean Startup by Eric Ries
* Founders at Work by Jessica Livingston
* How to Win Friends and Influence People by Dale Carnegie
Some articles I've read:
* Marc Andreesen's articles on starting a company
* Paul Graham's essays on startups
* Most things that are highly voted on on Hacker News
I have found that a lot of the information in these books is very practical, and have really raised my understanding of how large organizations work (at least intellectually). What other approaches should I be taking?
If you have any suggestions on my plan, what I'm reading, or doing, or whatever, please let me know.