What are the main financial statements used in accounting?

The main financial statements used in accounting are the Income Statement, Balance Sheet, and Cash Flow Statement. Each of these statements serves a specific purpose and provides critical information about a company's financial performance and position.

The Income Statement reflects a company’s performance over a specific period, detailing revenues and expenses to determine net income or loss. This statement is vital for understanding how effectively a company is generating profit from its operations.

The Balance Sheet provides a snapshot of a company’s financial position at a particular point in time, outlining its assets, liabilities, and equity. This statement is essential for stakeholders to assess the company’s financial health and how well it is managing its resources.

The Cash Flow Statement tracks the inflow and outflow of cash within a business over a period, categorized into operating, investing, and financing activities. This statement is crucial for evaluating the company’s liquidity and its ability to generate cash to meet obligations.

Together, these statements offer a comprehensive view of a company's financial status, performance over time, and liquidity, making them foundational elements of financial accounting. Other options include statements that are relevant but do not represent the primary financial statements used universally in accounting.