The Power of Accounting: What the Numbers Mean and How to Use Them
provides a highly readable text for non-financial managers. It
explores accounting's uses and limitations in the management
process. The text is intended for users of accounting information
as opposed to preparers. It focuses on aiding the reader in
understanding what accounting numbers mean, what they do not mean,
when and how they can be used for decision making and planning and
when they cannot. The book discusses the importance of accounting
information in the economy and the fact that accounting numbers are
often the result of estimates and arbitrary allocations. It also
includes a cautionary word about the imprecise use of terminology
often found in accounting and financial literature.
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