ülekandearvestust

Ülekandearvestus refers to the accounting method of recognizing revenue and expenses when they are earned or incurred, regardless of when the cash is actually received or paid. This accrual basis of accounting contrasts with the cash basis, which recognizes transactions only when cash changes hands. Under ülekandearvestus, revenues are recorded when goods are delivered or services are rendered, even if the customer has not yet paid. Similarly, expenses are recorded when they are incurred, such as when a company receives a bill for services or goods, even if payment has not yet been made. This method provides a more accurate picture of a company's financial performance and position over a specific period, as it matches revenues with the expenses incurred to generate them. Ülekandearvestus is widely used by businesses and is a requirement for most financial reporting standards. It helps in making better informed business decisions by reflecting the economic reality of transactions rather than just cash flow.