Chapter 14. How Business Managers Use a Financial Report
In This Chapter
Recognizing the limits of external financial statements
Locating detailed financial condition information
Identifying more in-depth profit information
Looking for additional cash flow information
If you're a business manager, I strongly suggest that you read Chapter 13 before continuing with this one. Chapter 13 discusses how a business's lenders and investors read its financial reports. These stakeholders are entitled to regular financial reports so they can determine whether the business is making good use of their money. The chapter explains key ratios that the external stakeholders can use for interpreting the financial condition and profit performance of a business.
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But as important as they are, the external financial statements do not provide all the accounting information that managers need to plan and control the financial affairs ...
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