Finantsaruannustel

Finantsaruannustel, often translated as financial statements, are formal records of the financial activities and position of a business, person, or other entity. They are prepared according to accounting standards and are used by management, investors, creditors, and government regulators to make informed decisions. The primary financial statements typically include the balance sheet, income statement, and cash flow statement.

The balance sheet presents a snapshot of an entity's assets, liabilities, and equity at a specific point in time. Assets represent what the entity owns, liabilities represent what it owes to others, and equity represents the owners' stake in the entity. The fundamental accounting equation, Assets = Liabilities + Equity, is always balanced on a balance sheet.

The income statement, also known as the profit and loss statement, reports an entity's revenues, expenses, and profits or losses over a specific period, such as a quarter or a year. It shows how effectively a company is generating sales and managing its costs.

The cash flow statement tracks the movement of cash and cash equivalents into and out of an entity over a period. It is divided into three sections: operating activities, investing activities, and financing activities, providing insight into an entity's ability to generate cash, meet its obligations, and fund its operations and growth. Together, these statements offer a comprehensive view of an entity's financial health and performance.