majandusarveldus

Majandusarveldus, also known as financial accounting, is a systematic process of recording, classifying, summarizing, and reporting financial transactions. It provides a comprehensive overview of a company's financial health and performance, enabling stakeholders to make informed decisions. The primary goal of financial accounting is to present financial information that is relevant, reliable, and comparable.

Financial accounting involves the use of generally accepted accounting principles (GAAP) or international financial reporting standards (IFRS) to ensure consistency and comparability across different entities. The core components of financial accounting include assets, liabilities, equity, revenue, and expenses. These elements are recorded in the general ledger, which serves as the foundation for preparing financial statements.

The main financial statements prepared through financial accounting are the balance sheet, income statement, cash flow statement, and statement of changes in equity. The balance sheet provides a snapshot of a company's financial position at a specific point in time, while the income statement shows the company's financial performance over a period. The cash flow statement details the inflows and outflows of cash, and the statement of changes in equity tracks the changes in a company's equity.

Financial accounting plays a crucial role in various aspects of business operations, including budgeting, forecasting, financial planning, and analysis. It helps businesses manage their finances effectively, attract investors, and comply with regulatory requirements. Additionally, financial accounting provides valuable insights for internal decision-making, such as evaluating the profitability of different business units or assessing the financial impact of strategic initiatives.