Earlier in the book, I described the anatomy of cash transactions. The idea of describing it this way came to me when I was in graduate school trying to figure out what was wrong with the accounting treatment of costs as it related to cash. It started with a particular analysis approach well known to engineers.
I’m a degreed engineer, so the approach I used wasn’t just tattooed into my thought process, it was beaten in so hard, it has become a part of my DNA. The basic idea is this. If we’re lost or stuck, we go back to first principles; foundational ideas we believe to be true. In this case, as a mechanical engineer, I thought about thermodynamics. Thermodynamics is one of those courses that you either understood, ...
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