A Note About the Financial Examples

There are many, many types of organizations around the world. Organizations may be publicly held (that is, they sell stock, or portions of ownership, to the general public), or they may be privately held. They may be gigantic or very small, for profit or nonprofit . Organizations may be within the government, provide education, or sell commercial products or other services.

The industries that these organizations serve are equally varied. The organization may be a manufacturing company, but what it manufactures can vary from food to automobiles. It may provide services, but those services may be as different as computer repair services or dry cleaning.

In the United States, accountants are required to follow generally accepted accounting principles (GAAP) when preparing financial statements, but, even so, this book cannot provide a complete understanding of all of the variations possible for every organization.

Important ‚  

The goal of these examples is to introduce you to the language, framework, and the most common types of financial issues that senior managers face. These examples can impart an understanding of how you, as a WLP professional, help drive the desired financial outcomes within a organization. This book relies upon basic examples suitable for either a simple manufacturing or service situation. As you read these examples, allow your creativity to play with how the same concepts can be applied for your unique organization. You can learn more about basic finance by reading the finance books listed in the Additional Resources section in the back of this book.