Financial Accounting. Theoretical Concepts and Case Studies

The authors’ intention is to provide a useful guide book to all those interested in financial accounting, involved in bookkeeping activities or in the financial analysis of companies. The book is structured in eight chapters which cover the main elements of the financial statements. In each chapter, the readers (students, professional accountants or other types of users of information from the financial statements) find a description of the main theoretical aspects, followed by illustrative examples for each key concept, which facilitate the process of understanding the studied phenomena. Each chapter also includes a number of case studies to be solved, which support the process of learning and better securing the gained knowledge. Case studies are especially designed to cover a wide range of situations which are very likely to be found in the real life of a company.

The key aspects covered by this book are the accounting principles, the preparation and the content of the financial statements, the analysis of information form the financial statements, and also the accounting recognition and measurement of owners’ equity, long-term assets, inventories, receivables, liabilities, treasury, revenues and expenses.

As a result, the readers acquire the ability to understand the content of the financial statements and to perform financial analyses and economic assumptions based on information from these reports. They also have the opportunity to comprehend the mechanisms of recognizing in accounting the transactions and events which form a company’s activity. We consider this book to be particularly useful for the complex examples presented and for the way it illustrates the terms in the specialized accounting language.