What are the three primary financial statements?

The three primary financial statements used in accounting are the Income Statement, Balance Sheet, and Cash Flow Statement.

The Income Statement summarizes a company's revenues and expenses over a specific period, leading to the determination of net income or loss. It provides insight into the company's performance by showing how much profit it generated during that time frame.

The Balance Sheet presents a snapshot of a company's financial position at a specific point in time. It lists assets, liabilities, and equity, allowing stakeholders to assess the company's resources and obligations.

The Cash Flow Statement outlines the cash inflows and outflows from operating, investing, and financing activities, providing valuable information about the company's liquidity and overall cash management.

Together, these statements give a comprehensive view of a company's financial health, performance, and cash management, which is essential for stakeholders, including investors, creditors, and management, to make informed decisions.