A company's statements summarize all of the transactions that have occurred over a particular period.

A company's financial statements provide a comprehensive summary of all transactions and activities that have taken place over a specific timeframe. These documents typically include the balance sheet, income statement, and cash flow statement, each serving a distinct purpose:

1. Balance Sheet: This statement offers a snapshot of the company's financial position at a particular date. It lists assets, liabilities, and shareholders' equity, adhering to the accounting equation: Assets = Liabilities + Equity. This helps stakeholders understand what the company owns versus what it owes.

2. Income Statement: This document summarizes the company's revenues and expenses over a determined period, often a fiscal quarter or year. The core purpose is to show how much profit or loss the company has generated during that time. The basic formula used here is: Net Income = Revenues - Expenses.

3. Cash Flow Statement: This statement tracks the flow of cash in and out of the business, categorizing it into operating, investing, and financing activities. It is crucial for assessing the company's liquidity and its ability to meet cash obligations.

In summary, these financial statements collectively reflect the company's operational performance, financial health, and cash-generating abilities, thus providing valuable insights for management, investors, and regulatory bodies.