If you can illustrate your items with examples that are vivid or even shocking, you are likely to enhance retrieval (as long as you do not overuse same tools and fall victim of interference!). Your items may assume bizarre form; however, as long as they are produced for your private consumption, the end justifies the means. Use objects that evoke very specific and strong emotions: love, sex, war, your late relative, object of your infatuation, Linda Tripp, Nelson Mandela, etc. It is well known that emotional states can facilitate recall; however, you should make sure that you are not deprived of the said emotional clues at the moment when you need to retrieve a given memory in a real-life situation

Harder item

Q: a light and joking conversation A: banter

Easier item

Q: a light and joking conversation (e.g. Mandela and de Klerk in 1992) A: banter

If you have vivid and positive memories related to the meetings between Nelson Mandela and F.W. de Klerk, you are likely to quickly grasp the meaning of the definition of banter. Without the example you might struggle with interference from words such as badinage or even chat. There is no risk of irrelevant emotional state in this example as the state helps to define the semantics of the learned concept! A well-thought example can often reduce your learning time several times! I have recorded examples in which an item without an example was forgotten 20 times within one year, while the same item with a subtle interference-busting example was not forgotten even once in ten repetitions spread over five years. This is roughly equivalent to 25-fold saving in time in the period of 20 years! Such examples are not rare! They are most effectively handled with the all the preceding rules targeted on simplicity and against the interference

Del inventario de formantes reconocidos, reconoceremos dos clases:

a. Los formantes léxicos: tienen un significado léxico, que se define en el diccionario: gota, cuenta. Se agrupan en clases abiertas. Pertenecen a una clase particular de palabras: sustantivos (gota), adjetivos (útil), adverbios (ayer), verbos (cuenta). Pueden ser:
- palabras simples (gota, útil, ayer);
- base a la que se adosan los afijos en palabras complejas (got-, politic-); - parte de una palabra, compuesta (cuenta, gotas).

b. Los formantes gramaticales: tienen significado gramatical, no léxico. Se agrupan en clases cerradas. Pueden ser:
- palabras independientes: preposiciones (a, de, por), conjunciones (que, si);
- afijos en palabras derivadas (-s, -ero, in-, des-);
- menos frecuentemente, formantes de compuestos (aun-que, por-que, si-no).

Focus on the present: The next time you find yourself annoyed at some minor thing, remember that letting your mind focus on the annoyance could impair your body language. To counter this, follow the suggestions below: ♦ Sweep through your body from head to toe and find three abilities you approve of. You could be grateful that you have feet and toes that allow you to walk. You might appreciate your ability to read.

Use a third-person lens: For this technique, you’ll need just a few minutes to sit down, a pen, and some paper. ♦ Start to describe your life as if you were an outside observer, and focus on all the positive aspects you can think of. ♦ Write about your job—the work you do and the people you work with. Describe your personal relationships and the good things friends and family members would say about you. Mention a few positive things that have happened today and the tasks you have already accomplished. ♦ Take the time to write down this narrative. Just thinking about it won’t be as effective

♦ Sit or lie down, close your eyes, and set the scene. Where is your funeral being held? What day of the week, what time of day? What is the weather like? See the building where the ceremony is being held. See people arriving. Who’s coming? What are they wearing? Now move into the building and look around inside. Do you see flowers? If so, smell the flowers’ scent heavy on the air. See people coming through the door. What are they thinking? What kind of chairs are they sitting in? What do these chairs feel like? ♦ Your funeral starts. Think of the people you care most about or whose opinions matter most to you. What are they thinking? See them stepping up one after another and delivering their eulogy. What are they saying? What regrets do they have for you? Now think: What would you like them to have said? What regrets do you have for yourself? ♦ See people following your coffin to the cemetery and gathering around your grave. What would you like to see written on your tombstone? ♦ Almost everyone, of all ages, genders, and seniority levels, gets a bit teary-eyed by the end. You might feel moved, touched, stirred. Stay with these emotions as much as you can and aim to get comfortable with them.

One simple but effective way to start is to try to find three things you like about the person you want to feel goodwill toward. No matter whom it is you’re talking to, find three things to appreciate or approve of—even if these are as small as “their shoes are shined” or “they were on time.” When you start searching for positive elements, your mental state changes accordingly and then sweeps through your body language

First, a visualization. This one comes from neuroscientist Dr. Privahini Bradoo, a highly charismatic person whose radiating warmth and happiness I’ve long admired. I was grateful when she shared one of her secrets with me: in any interaction, imagine the person you’re speaking to, and all those around you, as having invisible angel wings.

Remind yourself of these maxims several times a day, and notice the shift this can make in your mind and body. Another saying people often find equally effective: Of all the options open to me right now, which one would bring the most love into this world?

Perhaps we’re feeling annoyed or resentful toward them. Or perhaps they just feel too remote. In these cases, try going a step beyond goodwill to empathy and compassion. Goodwill means that you wish someone well without necessarily knowing how they’re feeling. Empathy means that you understand what they feel; perhaps you’ve had a similar experience in the past. Compassion is empathy plus goodwill: you understand how they feel, and you wish them well

Paul Gilbert, one of the main researchers in the field of compassion, describes the process of accessing compassion as follows: first comes empathy, the ability to understand what someone is feeling, to detect distress; second, sympathy, being emotionally moved by distress; and third, compassion, which arises with the desire to care for the well-being of the distressed person.

1. Imagine their past. What if you had been born in their circumstances, with their family and upbringing? What was it like growing up in their family situation with whatever they experienced as a child? It’s often said that everyone you meet has stories to tell, and that

everyone has a few that would break your heart. Consider also that if you had experienced everything they have experienced, perhaps you would have turned out just like they have. 2. Imagine their present. Really try to put yourself in their shoes right now. Imagine what it feels like to be them today. Put yourself in their place, be in their skin, see through their eyes. Imagine what they might be feeling right now—all the emotions they might be holding inside. 3. If you really need compassion dynamite, look at them and ask: What if this were their last day alive? You can even imagine their funeral. You’re at their funeral, and you’re asked to say a few words about them. You can also imagine what you’d say to them after they’d already died

Self-confidence is our belief in our ability to do or to learn how to do something. Self-esteem is how much we approve of or value ourselves. It’s often a comparison-based

Self-compassion is how much warmth we can have for ourselves, especially when we’re going through a difficult experience

♦ Sit comfortably, close your eyes, and take two or three deep breaths. As you inhale, imagine drawing in masses of clean air toward the top of your head; then let it whoosh through you from head to toe as you exhale, washing all concerns away. ♦ Think of any occasion in your life when you performed a good deed, however great or small. Just one good action—one moment of truth, generosity, or courage. Focus on that memory for a moment. ♦ Now think of one being, whether present or past, mythical or actual—Jesus, Buddha, Mother Teresa, the Dalai Lama—who could have great affection for you. This could be a person, a pet, or even a stuffed animal. ♦ Picture this being in your mind. Imagine their warmth, their kindness and compassion. See it in their eyes and face. Feel their warmth radiating toward you, enveloping you. ♦ See yourself through their eyes with warmth, kindness, and compassion. Feel them giving you complete forgiveness for everything your inner critic says is wrong. You are completely and absolutely forgiven. You have a clean slate. ♦ Feel them giving you wholehearted acceptance. You are accepted as you are, right now, at this stage of growth, imperfections and all. You are perfect. At this stage of development, you are perfect. At this stage of growth, you are perfect.

At this stage of perfection, you are perfect. With everything that’s in your head and heart, you are perfect. ♦ With all your imperfections, you are perfect. ♦ For this phase of growth, you are perfect. ♦ You are fully approved just the way you are, at this stage of development, right now.

Una palabra como libro no es segmentable en partes que preserven la dualidad entre sonido y significado: es una palabra simple. En cambio, libro-s, libr-ero, libr-ito contienen cada una dos formantes. La morfología detiene su análisis al llegar a la palabra.

There are three approaches to calculate the point of profit maximization.

First, given that profit is the difference between total revenue and total costs, maximum profit occurs at the output level where this difference is the greatest.

There are three approaches to calculate the point of profit maximization.

Second, maximum profit can also be calculated by comparing revenue and cost for each individual unit of output that is produced and sold. A business increases profit through greater sales as long as per-unit revenue exceeds per-unit cost on the next unit of output sold.

Profit maximization takes place at the point where the last individual output unit breaks even.

Beyond this point, total profit decreases because the per-unit cost is higher than the per-unit revenue from successive output units.

There are three approaches to calculate the point of profit maximization.

Third approach compares the revenue generated by each resource unit with the cost of that unit.

Profit contribution occurs when the revenue from an input unit exceeds its cost.

The point of profit maximization is reached when resource units no longer contribute to profit.

Use objects that evoke very specific and strong emotions: love, sex, war, your late relative, object of your infatuation, Linda Tripp, Nelson Mandela, etc. It is well known that emotional states can facilitate recall;

you should make sure that you are not deprived of the said emotional clues at the moment when you need to retrieve a given memory in a real-life situation

In 2009, the US Financial Accounting Standards Board (FASB) released the FASB Accounting Standards Codification™. The Codification is the single source of authoritative nongovernmental US generally accepted accounting principles (US GAAP) effective for period endings after 15 September 2009. The Codification supersedes all previous US GAAP standards. We have attempted to update the readings to reference or cross-reference the Codification as appropriate. Candidates are responsible for the content of accounting standards as addressed in the readings, not for the actual reference numbers.

Reading 22 introduces the range of information that is available to analyze the financial performance of a company, including the principal financial statements (the income statement, balance sheet, cash flow statement, and statement of changes in owners’ equity), notes to those statements, and management discussion and analysis of results. A general framework for addressing most financial statement analysis tasks is also presented.

The presentation of financial information to the public by a company must conform to applicable financial reporting standards based on factors such as the jurisdiction in which the information is released.

Reading 24 in study session 7 explores the roles of financial reporting standard-setting bodies and regulatory authorities. The International Accounting Standards Board’s conceptual framework and the movement towards global convergence of financial reporting standards are also described.

Financial analysis is the process of examining a company’s performance in the context of its industry and economic environment in order to arrive at a decision or recommendation.

Often, the decisions and recommendations addressed by financial analysts pertain to providing capital to companies—specifically, whether to invest in the company’s debt or equity securities and at what price.

An investor in debt securities is concerned about the company’s ability to pay interest and to repay the principal lent.

An investor in equity securities is an owner with a residual interest in the company and is concerned about the company’s ability to pay dividends and the likelihood that its share price will increase.

Overall, a central focus of financial analysis is evaluating the company’s ability to earn a return on its capital that is at least equal to the cost of that capital, to profitably grow its operations, and to generate enough cash to meet obligations and pursue opportunities.

Fundamental financial analysis starts with the information found in a company’s financial reports.

Acompany's financial reports include audited financial statements, additional disclosures required by regulatory authorities, and any accompanying (unaudited) commentary by management.

Basic financial statement analysis provides a foundation that enables the analyst to better understand information gathered from research beyond the financial reports.

Reading 22 is organized as follows:

Section 2 discusses the scope of financial statement analysis.

Section 3 describes the sources of information used in financial statement analysis, including the primary financial statements.

Section 4 provides a framework for guiding the financial statement analysis process.

The role of financial reporting by companies is to provide information about a company’s performance, financial position, and changes in financial position that is useful to a wide range of users in making economic decisions.1 The role of financial statement analysis is to use financial reports prepared by companies, combined with other information, to evaluate the past, current, and potential performance and financial position of a company for the purpose of making investment, credit, and other economic decisions. (Managers within a company perform financial analysis to make operating, investing, and financing decisions but do not necessarily rely on analysis of related financial statements. They have access to additional financial information that can be reported in whatever format is most useful to their decision.)

The role of financial reporting by companies is to provide information about a company’s performance, financial position, and changes in financial position that is useful to a wide range of users in making economic decisions.

The role of financial statement analysis is to use financial reports prepared by companies, combined with other information, to evaluate the past, current, and potential performance and financial position of a company for the purpose of making investment, credit, and other economic decisions.

Managers within a company perform financial analysis to make operating, investing, and financing decisions but do not necessarily rely on analysis of related financial statements.

Managers have access to additional financial information that can be reported in whatever format is most useful to their decision.

Managers within a company perform financial analysis to make operating, investing, and financing decisions but do not necessarily rely on analysis of related financial statements. They have access to additional financial information that can be reported in whatever format is most useful to their decision.)

1st Part

In evaluating financial reports, analysts typically have a specific economic decision in mind.

Examples of these decisions include the following:

• Evaluating an equity investment for inclusion in a portfolio.

• Evaluating a merger or acquisition candidate.

• Evaluating a subsidiary or operating division of a parent company.

• Deciding whether to make a venture capital or other private equity investment.

• Determining the creditworthiness of a company in order to decide whether to extend a loan to the company and if so, what terms to offer.

In general, analysts seek to examine the past and current performance and financial position of a company in order to form expectations about its future performance and financial position.

Analysts are concerned about factors that affect risks to a company’s future performance and financial position.

An examination of performance can include an assessment of a company’s profitability (the ability to earn a profit from delivering goods and services) and its ability to generate positive cash flows (cash receipts in excess of cash disbursements)

Profit and cash flow are not equivalent.

Profit (or loss) represents the difference between the prices at which goods or services are provided to customers and the expenses incurred to provide those goods and services.

Profit (or loss) includes other income (such as investing income or income from the sale of items other than goods and services) minus the expenses incurred to earn that income.

Overall, profit (or loss) equals income minus expenses, and its recognition is mostly independent from when cash is received or paid.

llustration of the distinction between profit and cash flow.

Sennett Designs (SD) sells furniture on a retail basis.

SD began operations during December 2009 and sold furniture for €250,000 in cash.

The furniture sold by SD was purchased on credit for €150,000 and delivered by the supplier during December.

The credit terms granted by the supplier required SD to pay the €150,000 in January for the furniture it received during December.

In addition to the purchase and sale of furniture, in December, SD paid €20,000 in cash for rent and salaries.

1. How much is SD’s profit for December 2009 if no other transactions occurred?

2. How much is SD’s cash flow for December 2009?

3. If SD purchases and sells exactly the same amount in January 2010 as it did in December and under the same terms (receiving cash for the sales and making purchases on credit that will be due in February), how much will the company’s profit and cash flow be for the month of January?

Solution to 1:

SD’s profit for December 2009 is the excess of the sales price (€250,000) over the cost of the goods that were sold (€150,000) and rent and salaries (€20,000), or €80,000.

Solution to 2:

The December 2009 cash flow is €230,000, the amount of cash received from the customer (€250,000) less the cash paid for rent and salaries (€20,000).

Solution to 3:

SD’s profit for January 2010 will be identical to its profit in December: €80,000, calculated as the sales price (€250,000) minus the cost of the goods that were sold (€150,000) and minus rent and salaries (€20,000). SD’s cash flow in January 2010 will also equal €80,000, calculated as the amount of cash received from the customer (€250,000) minus the cash paid for rent and salaries (€20,000) and minus the €150,000 that SD owes for the goods it had purchased on credit in the prior month.