Accounting For Dummies, 7th Edition

Chapter 13

Generating Internal Financial Information for Management Use

IN THIS CHAPTER

Recognizing the managerial limits of external financial statements

Understanding the primary differences between internal and external financial information

Examining the additional information needed for managing assets and liabilities

Identifying the in-depth information needed for managing profit

Providing additional information for managing cash flow

Steering clear of rookie mistakes with internal financial information

If you’re a business manager, we strongly suggest that you read the preceding two chapters before continuing with this one:

• Chapter 11 discusses how a business’s external, nonmanagerial lenders and investors read an external financial report. These stakeholders are entitled to regular financial reports so they can determine whether the business is making good use of their money. ...