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Section 4 The bigger financial picture

If you are already familiar with the style and content of your organization’s accounts, you will be able to move through this section very quickly. However, for many non-financial managers, the balance sheet, profit and loss account and cash flow statement retain an air of mystery. In this section we will explain the very simple principles on which accounts are based and attempt to dispel some of the mystification. By the end, you should have the ability to tackle these statements with much more confidence. We focus on the accounting practices used in the private sector but the principles can be transferred to the other sectors.