Carmen Braun (B)

This is a basic case used to introduce students to financial accounting. It presents the set up and first year of operations of a commercial company. It defines the following basic concepts: assets, liabilities, own resources, income and expenses. It shows the preparation and utility of the following accountancy tools: balance shhet, profit and loss account and cashbook summary. The case also looks at the following issues: stock valuation (FIFO, average, etc.) and classification of expenses (by function or category). This case is the follow up to the Carmen Braun case A, but it can be used independently.