Which are the main financial statements used in business?

The main financial statements used in business are the income statement, balance sheet, and cash flow statement. Each of these statements serves a distinct purpose in providing a comprehensive view of a company's financial health.

The income statement, also known as the profit and loss statement, summarizes a company's revenues and expenses over a specific period of time. This gives insights into the company's profitability and operational efficiency, showing how much profit or loss was generated.

The balance sheet provides a snapshot of a company's financial position at a specific point in time. It outlines the company's assets, liabilities, and equity, allowing stakeholders to assess the net worth of the business and understand how resources are financed—either through debts or shareholder investments.

The cash flow statement tracks the flow of cash in and out of the company over a particular timeframe. It is crucial for evaluating the liquidity of the business and its ability to meet short-term obligations. This statement highlights how cash is generated and used in operating, investing, and financing activities.

Together, these three financial statements provide a well-rounded view of a company's performance and financial status, making them essential tools for management, investors, creditors, and analysts. Other options included statements and reports that are important but do not constitute the core financial statements universally recognized in business practices