Non-financial managers often face several challenges in understanding financial reports. Firstly, they may lack the necessary financial literacy to comprehend complex financial terms and concepts. Secondly, they may struggle to interpret the numbers and figures presented in the reports. Thirdly, they may find it difficult to understand the implications of these financial reports on their department or the overall business. Lastly, they may not understand the assumptions and estimations that underlie many financial reports, leading to potential misunderstandings or misinterpretations.
Financial statements do not always tell the entire story about a company. Accounting methods and fi...
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