Hi all, Am looking to buy a book that covers basic FSA principles before diving in to the CFA/Schweser readings. The reason for this: I have no Accounting background. Can anyone recommend a good book? Thanks!
Accounting comes in three main flavors: financial, managerial (cost), and tax. For CFA you want the first. I understand FSA to be a distinct topic, sort of the second course in financial accounting: how to “read between the numbers” to divine what’s actually happening at a firm. This includes issues like quality of earnings and sniffing out management’s attempts to hide the bad & ugly. However at cfai they seem to lump this with basic financial accounting. Just keep in mind that any text with FSA in the title might assume basic accounting knowledge, so be careful that it covers the introductory material you may need. You might look up financial accounting books on Amazon and pick up a used copy of a well-reviewed one. There may also be online sources, such as MIT’s extensive online finance curriculum. Accounting is one of those areas where learning by doing is very necessary, so whatever form of instruction you pick up, make sure you do the practice exercises.