Case Study on Basic Financial Accounting:

Basic financial accounting is the branch of accounting which is aimed at the control and improvement of the firm’s finance system. Every firm has its duty to earn money and receive profit, but without the constant assistance of accounting it is impossible to keep the situation under control.

Basic financial accounting is supposed to help the executives of the company with decision making and solution of the relevant problems. This branch of accounting evaluates the financial situation of the company, analyzes the current functioning of the firm and makes sure the capital works in the appropriate way in the right sectors of the firm. It is of vital importance for the company to control the financial condition of the firm and react to its changes rapidly, otherwise it will be difficult to save it from bankrupting, crisis and other negative phenomena.

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So, basic financial accounting plays the informative role, informing the owners of the firm about the current condition of their business; regulating role, observing the condition of the company all the time and suggesting the appropriate solutions to the situation which has occurred there; the role of control over the finance, which means the complex of actions aimed at the all day round monitoring of the expenditures and profit what makes it impossible or completely difficult to steal the money or use it illegally. All in all, basic financial accounting keeps the finance of the firm under the constant control and monitoring, doing statistics, comparison and analysis of the financial processes carried out in the company.

Basic financial accounting is the important sector of accounting which regulates the finance of the firm and the student should be aware about its issues and aspects if he wants to prepare a good case study on it. The main requirements to case study on basic financial accounting are the right analysis of the problem, the correct evaluation of the cause and effect, investigation of the case site, the effective supply with the arguments and facts about the basic financial accounting collected in the reliable sources. The student who is analyzing the case on financial accounting should be ready to compare the financial situation of the firm with another company and dwell on the pluses and minuses of the policy for the appropriate solution of the case.

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