Finance and Accounting for Nonfinancial Managers

Finance and Accounting for Nonfinancial Managers

Finance and Accounting for Nonfinancial Managers

Finance and Accounting for Nonfinancial Managers


As one course among many offered in the American Management Association’s Self-Study curriculum, Finance and Accounting for Nonfinancial Managers, Second Edition, introduces the reader to financial terminology, relates financial measures to operating information, and enables the student to understand and apply financial measures to operating performance. Today’s managers, whether supervisors or senior executives, are expected to understand and use financial and operational measures, prepare and utilize budgets, respond to inquiries about the financial consequences of actions taken by them or by their department or team, and understand and use financial and accounting terminology—the common language of business measurement. Written in a conversational, easy-to-understand tone, the course treats finance and accounting from the perspective of users of financial information—it enhances their ability to communicate effectively with subordinates, other managers, senior executives, and accounting and finance professionals. It offers managers the ability to use and analyze financial information to improve the performance of their operations and to identify—and avoid—potential problems.

The second edition features a new chapter, “Corporate Governance,” which examines and analyzes recent financial scandals, outlines the key points of the Sarbanes-Oxley Act of 2002, and explains the role of the auditor and the SEC. This edition has been updated throughout to provide managers with the most current and complete information available.


Are You a Financial Manager?

Bob had recently been hired as the controller of a small, semi- autonomous division of a publicly held company that was experi- encing severe growing pains. Rapid expansion strained the cash resources of the company as well as its human resources. Bob decided to introduce open-book management to the employees, but he knew he’d have to give people some basic tools before the com- pany’s financial information would make much sense to them.

He called the first group together and asked, “How many of you are financial managers?” Every hand stayed down. Then he asked, “How many of you have a checking account?” Most of the hands went up. “How many of you make mortgage or car pay- ments?” Again, most of the group had loans they were paying off. When he asked, “How many of you have MasterCard or VISA cards?” nearly everyone raised their hand.

Bob pointed out that the managers in the group were manag- ing cash, making investments and incurring loans, handling credit, and looking out for their own financial well-being. They all had plenty of experience that they could use as they analyzed the finan- cial results of the company. When he asked the group, “How many of you really are financial managers?” nearly everyone responded affirmatively.
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