The financial manager must look beyond financial statements to obtain insight into developing or existing problems since the accrual accounting data do not fully describe the circumstances of a firm.

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Accrual accounting data only provide a snapshot of a firm's financial position and performance at a specific point in time. It is essential for financial managers to look beyond the financial statements to gain a deeper understanding of the company's financial health, market conditions, and other factors that may impact its performance. This requires a comprehensive analysis of various sources of financial data, as well as qualitative information such as customer feedback and industry trends.

The Financial Manager Must Look Beyond Financial Statements to Obtain