What are the four types of financial statements?

The four types of financial statements recognized in accounting are the income statement, balance sheet, statement of cash flows, and statement of equity.

The income statement details a company's revenues, expenses, and profits or losses over a specific period. It provides insight into how well the company is performing economically.

The balance sheet offers a snapshot of a company's assets, liabilities, and shareholders' equity at a particular point in time, indicating what the company owns and owes.

The statement of cash flows outlines the cash generated and used in operating, investing, and financing activities during a period, showcasing how cash is managed within the organization.

Lastly, the statement of equity reflects changes in equity from transactions such as issuing shares, dividends, and retained earnings accumulation.

Understanding these key statements is essential for assessing a company's financial health, performance, and cash management strategies, which is why this particular combination of financial statements is deemed correct.