What are the main financial statements?

The main financial statements used in accounting are the Balance Sheet, Income Statement, Statement of Cash Flows, and Statement of Changes in Equity.

The Balance Sheet provides a snapshot of a company's assets, liabilities, and equity at a specific point in time, reflecting its financial position. The Income Statement shows the company’s revenue, expenses, and profits over a specific period, highlighting its performance. The Statement of Cash Flows details cash inflows and outflows from operating, investing, and financing activities, elucidating how the company generates and spends cash. Finally, the Statement of Changes in Equity, also known as the Statement of Changes in Owners' Equity, summarizes the changes in equity components, such as retained earnings and shareholder contributions, throughout the reporting period.

Together, these statements offer a comprehensive overview of a company’s financial health and operational results, making option C the correct choice as it includes all the essential elements of formal financial reporting.