Practising managers require sound knowledge of the principles of accounting, in order to understand how to use financial reports in decision-making processes. This text aims to supply a comprehensive overview, for managers who need to know how to obtain and use this kind of information effectively. It explains such principles as: cash flow statements; cost benefit analysis; flexible budgeting; financial and management ratios; long range planning; and responsibility accounting. It also demonstrates how managers can develop competence in their interpretation of financial documents. Only when the manager has seen how these reports have been prepared, and the ways in which they are limited, can the information they provide be effective for planning and control, and so benefit the overall profitability.