1.

Balance Sheet: Also known as the statement of financial position, the balance

sheet presents a company's assets, liabilities, and equity at a specific point in

time. Assets are what the company owns, liabilities are what it owes, and

equity represents the owner's claim on the company's assets after deducting

liabilities. The balance sheet follows the fundamental accounting equation:

Assets = Liabilities + Equity.

2. Income Statement: Also referred to as the profit and loss statement (P&L),

the income statement shows a company's revenues, expenses, gains, and

losses over a specific period, typically a month, quarter, or year. The bottom

line of the income statement reflects the company's net income or net loss,

which indicates its profitability during the period.

3. Cash Flow Statement: This statement provides information about the cash

inflows and outflows from operating, investing, and financing activities during

a specific period. It helps stakeholders understand how effectively a company

manages its cash resources to fund its operations, investments, and financial

obligations.

4. Statement of Changes in Equity: Sometimes included as part of the financial

statements or presented separately, this statement outlines the changes in

equity accounts such as common stock, retained earnings, and additional

paid-in capital over a specific period. It typically shows the beginning and

ending balances of each equity account and any adjustments made during the

period.
5. Notes to Financial Statements: These are additional disclosures

accompanying the financial statements, providing detailed explanations,

assumptions, and clarifications about the information presented in the

statements. Notes to financial statements help users understand the

accounting policies, estimates, and other relevant information that cannot be

adequately conveyed within the primary financial statements.