Carmen Braun (B) - Teaching Note

This Teaching Note outlines in detail the teaching objectives and session plan for the case. This is a basic case for introducing students to the concept of Financial Accounting. It describes the first year of operations of an industrial company. It reviews the basic concepts: assets, liabilities, own resources, income and spending. It illustrates the preparation and utility of accounting statements: the balance sheet, profit and loss account and cash book. The case also outlines the following themes: stock valuation (FIFO, average, etc), classification of spending (by function or nature). This case is a continuation of Carmen Braun (A), but it can be used independently.