How many of you have problems in financial accounting? Many of course, I can vouch for that.Assignments are never completed on time. Parents are always hovering over you guys at home. College Professors make life miserable with deadlines. Case studies are another issue to be dealt with. In today’s fast paced life falling behind other is not the best thing to happen to anyone of us.Financial accounting case studies with solutions is here to help.
Financial Accounting as a subject
Financial accounting is a subject which deals with the summary, analysis and reporting of financial transactions in relation to businesses. The accounting process entails keeping of financial data to present before stock holders, banks, income tax department, government agencies and other stake holders of business.
Why do students study financial accounting?
Financial accounting is concerned with keeping of accountancy figures for businesses.Accounting jobs are always in high demand. Though the field is challenging and exciting, it has great prospects. It also serves as a platform for senior management level positions.Financial accounting case studies with solutions is the place to be.
Firms of all capacities recruit financial accounting pass outs for accounting positions. Government jobs are also an option for students studying financial accounting.
Problems faced by students in studying financial accounting
The field of financial accounting is very prospective, but with its own set of challenges. It is good for students with mathematical inclination.Free accounting case studies offer huge scope.
- The methods adopted by schools are not adequate for teaching Financial Accounting.
- Lack of properly qualified teachers.
- Students are also at fault. Students do not ask questions properly while attending classes.
- Students may not have mathematical set of mind.
- Time planning is an important factor. Students find it difficult to manage their time.
- The students try to memorize the subject for academic excellence and fail to understand the foundation.
- Students do not concentrate on practical aspects of the subject.
Financial accounting case studies with solutions should make it easy for students
There are various sites offering financial accounting case studies for clearing student’s concepts. One of the sites offering case studies to students is slideshare.com. Where Morgan Manufacturing has been explored.
Financial accounting case studies with solutions generally consist of an introduction, situation analysis and conclusion. The events and facts recorded on the operations include productivity improvement studies, financial statements, comparison of operating performance. The key facts derived out of this study denotes that Morgan used LIFO as inventory costing method and reserve.
Inventory Costing Methods are studied with a lot of gravity. At the start, the beginning inventory is added to the net purchases which results in goods available for sale. The last step here draws inference of the cost of goods sold and balance inventory.
The various concepts studied are LIFO and FIFO, which are Last in First Out and First In First Out concepts.On the basis of these studies the balance sheet is prepared. The balance sheet consists of cost of goods sold, gross margin, income, retained earnings and inventory.
There are various key parameters used in assessing the operating efficiency. Free accounting case studies offer a lot of help. They are:
- Gross Margin Percentage
- Pre-tax return on sales
- Pre-tax return on assets
- Inventory Turnover
- Day’s inventory
The profit is the ultimate result of the study. The conclusion also consists of a descriptive paragraph explaining the financial results of the company.
Other Financial accounting case studies with solutions available on the web include, ones on Cad bury Schweppes. This is a huge company and all such companies are required by law to maintain and produce statements. These financial statements are also of utmost importance to stakeholders. Cad bury Schweppes is an international company, which manufactures confectioneries and non-alcoholic beverages and spread worldwide.
The main financial statements are 1) Profit & loss statement 2) Balance Sheet 3) Cash Flow statement.
The first step in accounting case studies is to establish financial goals. The employees should know what they are working towards. Set standards should be ascertained for the achievements to be measurable. Setting proper goals will assist in meeting sales targets.
Financial accounting case studies with solutions are strewn across the web.This is an example that I came across, and would like to share with you.
Cadbury has ascertained three performance goals for a certain year. They are net sales value, operating margin growth of certain figure and free cash flow.
A profit and loss is a table compiled after every accounting period. It helps to understand the financial status of the company. The profit and loss statement shows the following:
- The first line shows the sales revenue, also called the turnover.
- Next comes the production material costs, which is subtracted from the turnover.
- The shares from other companies are shown next.
- The investors’ interest on loans is shown next.
- Then comes the profit, which is obtained after all external costs are deducted.
- Then the earnings per share is derived.
Then comes the Balance sheet. This shows the relationship between the assets of the business and liabilities of the business.
These are a few examples of free accounting case studies which I have shared with you today. Writing a case study can be another daunting task for students. Let us make it easier.
There are various guidelines as per Financial accounting case studies with solutions.
- The case has to be examined thoroughly before beginning.
- Focus on the analysis you are about to make
- Try to find out the options for solutions
- Select the best solution
- Then the case study has to be drafted.
- The case study consists of an introduction, background, alternatives, projected solution and a recommendation.
- After finalization of the case, proof reading and editing is as important.
Well written solved case studies will help sell the products of business houses. It is a bit hard to write an excellent case study. However, it is not impossible.You can find various websites where examples are given, step-by-step. There are numerous templates as well, which can guide you in your endeavor to write a case study.
Financial accounting case studies with solutions says benefits of the case study method is that it can give detailed report of the principles and individuals and it can be used as a source of hypotheses.Then there are fictional case studies and factual ones as well. Factual ones provide