THE ACCOUNTING ANALYSIS OF THE CAPITAL FLOW IN THE CONTEXT OF THE BALANCE FLOWS IN THE CROATIAN ECONOMY

The accounting analysis of the capital flow in the Croatian economy is intended to determine the significance of the capital flow in the creation of a positive financial flow as a prerequisite of the investments in business activities in Croatia.
The paper indicates the methodological process of identifying and analysing the capital flow, starting from the balanced balance status.
The analysis has identified the positive capital flows that should be primarily invested in the qualitative and quantitative development of the Croatian economy. Such a situation should be reflected on the business profitability, as well. As the Croatian economy, considering
its low business profitability, is not able to provide its own funds, each capital increase aimed at the business expansion is connected with foreign capital infl ows.