The three financial statements are: (1) the income statement, (2) the balance sheet, and (3) the cash flow statement. Each of the financial statements provides important financial information for both internal and external stakeholders of a company.
The income statement illustrates the profitability of a company under accrual accounting rules. The balance sheet shows a company's assets, liabilities and shareholders’ equity at a particular point in time. The cash flow statement shows cash movements from operating, investing and financing activities.